Broadcom Inc. (AVGO) saw its shares jump sharply in pre-market trading on Tuesday, climbing as much as 7% to push the company’s market capitalization above $2 trillion. The rally was fueled by a combination of rising enthusiasm around artificial intelligence infrastructure demand and two distinct catalysts: a massive equity plan from Alphabet and bullish commentary from Nvidia’s CEO.
The stock was already trading higher ahead of Broadcom’s fiscal second-quarter earnings, scheduled for June 3, but the morning’s news accelerated gains. Alphabet announced plans to issue $80 billion in equity to fund AI infrastructure, a move that would directly benefit Broadcom, which helps design custom chips for Alphabet’s data centers. Almost simultaneously, Nvidia CEO Jensen Huang suggested that Marvell Technology could reach a $1 trillion valuation, lifting shares of Marvell and likewise boosting Broadcom, a comparable chipmaker operating in similar custom silicon and networking spaces.
Wall Street analysts remain broadly constructive. Susquehanna raised its price target from $450 to $490 with a Positive rating, citing continued momentum in custom XPUs and strong demand for TPUs. UBS also lifted its target to $490, maintaining a Buy rating, while noting a shift in the structure of orders from Anthropic. That change—from full racks to a standard ASIC arrangement—reduces expected revenue to roughly 25% of the original figure but is likely to generate significantly higher margins.
Heading into the report, options markets are signaling potential for a large post-earnings swing, with traders keenly focused on whether Broadcom can convert AI-driven tailwinds into multi-year growth guidance. The company’s transformation from a traditional chipmaker into a core AI infrastructure provider remains central to the investment thesis, but risks include margin pressures, software growth comparisons, and intensifying competition in custom silicon.
