Broadcom (AVGO) is drawing renewed Wall Street attention as its AI chip strategy strengthens, even as a major partnership between Google and Marvell pressures the stock. Shares traded around $354, up roughly 2% year-to-date, after volatile sessions driven by competing catalysts.
According to reporting by CoinCentral, Broadcom is in talks with Blackstone and Apollo Global Management to raise more than $60 billion in debt to fund AI infrastructure projects linked to Anthropic. The financing may include a $30 billion junior debt tranche alongside a senior-secured portion.
At the same time, Google expanded its AI chip partnership with Marvell, sending Marvell shares up nearly 8% and Broadcom down more than 5%. Reuters reported the arrangement could support up to $120 billion in Marvell revenue if Google hits all purchase targets through fiscal 2033. Google also received a warrant to buy up to 58.97 million Marvell shares at $206.58 each.
Broadcom's counter is its AI inference chip developed with OpenAI, called Jalapeño. On August 25, OpenAI published early performance results showing the chip delivered 1.5 to 1.9 times more AI work per watt at peak throughput than rival systems, and 1.7 to 3.6 times lower end-to-end latency. OpenAI plans to deploy Jalapeño at gigawatt scale.
Broadcom's fiscal Q2 2026 revenue hit $22.2 billion, up 48% year-over-year. AI semiconductor revenue reached $10.8 billion, up 143% year-over-year, while infrastructure software added $7.2 billion. Non-GAAP diluted EPS was $2.44, above the $2.40 consensus. Management guided Q3 revenue to around $29.4 billion, an 84% year-over-year increase, and expects AI semiconductor revenue of $16 billion in Q3, up 200%. For fiscal 2026, the company projects $56 billion in AI semiconductor revenue and more than $100 billion in AI chip revenue by fiscal 2027.
Separately, Cathie Wood's ARK Invest bought 57,705 Broadcom shares worth roughly $20.5 million across multiple ETFs on August 26, days before Broadcom's Q3 earnings on September 3. ARK also sold 37,977 AMD shares across four ETFs for about $18.2 million, continuing a multi-day reduction. Wall Street expects Broadcom's Q3 revenue to reach $29.24 billion, up 83.3% year-over-year, with adjusted EPS forecast at $3.21 versus $1.69 a year ago. Broadcom holds a Strong Buy consensus on TipRanks, with an average price target near $509.96, implying roughly 43.4% upside.
ARK also added Cerebras Systems and Cloudflare shares worth a combined $26 million while trimming positions in Tempus AI, Twist Bioscience, CrowdStrike, Robinhood, Roblox, and Brera Holdings. The trades came the same day Nvidia reported Q2 FY27 adjusted EPS of $2.22 against estimates of $2.09 and revenue up 106% year-over-year to $96.2 billion, reinforcing ARK's focus on AI-linked companies.
