Broadcom (AVGO) Stock Soars on Google AI Chip Partnership and VMware Momentum: What Investors Need to Know Now

Updated: November 30, 2025

Broadcom Inc. (NASDAQ: AVGO) has just wrapped up one of its strongest weeks of 2025, with the semiconductor and infrastructure software giant surging to fresh highs on the back of an AI-fueled rally, deepening ties with Google, and robust earnings momentum.

As of Friday’s close, Broadcom traded around $403 per share, near its 52‑week high and up roughly 18% over the past week, according to market data and recent institutional research. ^[1] Multiple news outlets now rank AVGO among the best‑performing large‑cap AI and tech stocks of the year, with gains of close to 70% in 2025 and far above‑market returns over the past three years. ^[2]

Below is a rundown of the key Broadcom stock stories driving headlines as of November 30, 2025 — and what they may mean for investors heading into 2026.

Key Takeaways

Stock performance: Broadcom has gained about 16% since Google launched its Gemini 3 AI model on November 18 and is up 7.6% for November, even as the broader tech sector fell. ^[3]
AI partnership tailwind: The stock’s latest rally is closely tied to Broadcom’s role in designing Google’s tensor processing units (TPUs) and a potential expansion of Google’s chip deals with Meta and other hyperscalers. ^[4]
Earnings strength: Broadcom reported Q3 FY2025 revenue of about $16 billion (+22% YoY), with AI semiconductor revenue jumping 63% to $5.2 billion and a strong Q4 outlook. ^[5]
Wall Street stance: Dozens of analysts rate AVGO a Buy/Outperform, with median price targets near $400 and several high‑profile firms now modeling scenarios where the stock could approach $700+ over the next few years if AI and VMware growth persists. ^[6]
Risks: Heavy insider selling, a lawsuit from Fidelity over VMware‑linked software access, and ongoing customer pushback on VMware licensing and pricing changes are emerging as meaningful overhangs. ^[7]

Broadcom Stock: Fresh Highs After an 11% AI Spike

The latest leg of Broadcom’s rally began on November 24, when AI‑related tech stocks powered a sharp rebound in U.S. markets. Broadcom led the S&P 500 that day, with its shares surging about 11%, according to market coverage from Investopedia and other outlets. ^[8]

A few key performance stats now frame the AVGO story:

Daily/weekly move: AVGO’s 11.1% single‑session jump pushed the stock toward new highs and helped drive an approximate 18% gain for the week, per alternative‑data trackers. ^[9]
November outperformance: MarketWatch notes that only 18 of 84 major tech stocks posted gains in November; Broadcom was one of them, rising about 7.6% while the broader information‑technology sector fell 4.8%. ^[10]
AI‑linked momentum: TradingView highlights that AVGO is up 16% since Google’s Gemini 3 launch, driven by investor enthusiasm for Broadcom’s role in designing Google’s TPUs and next‑generation AI accelerators. ^[11]

In short, Broadcom has become one of the clearest public‑market proxies for AI infrastructure spending — and its price action over the past two weeks reflects that perception.

The Google AI Chip Catalyst: TPUs, Gemini 3 and a Bigger Addressable Market

The centerpiece of the current Broadcom story is its deepening relationship with Alphabet’s Google in custom AI chips and data‑center hardware.

Google’s Gemini 3 and Broadcom’s TPU role

Google’s rollout of its Gemini 3 AI model has triggered a powerful rally in Alphabet shares and revived the broader “AI trade.” Analysts and reporters point out that Broadcom is a key design and manufacturing partner behind Google’s tensor processing units (TPUs) — custom AI accelerators that compete with Nvidia’s GPUs in large‑scale training and inference workloads. ^[12]

Investopedia recently described Broadcom as one of the “top beneficiaries” of Alphabet’s renewed momentum, noting that AVGO has:

Outpaced all Magnificent 7 stocks on a year‑to‑date basis, with roughly 70% gains in 2025.
Become one of the best‑performing stocks in the entire S&P 500 this year. ^[13]

Potential Meta–Google–Broadcom triangle

The AI hardware narrative broadened further with reports that Meta is in talks to spend billions on Google’s TPUs starting as early as 2027, potentially renting capacity via Google Cloud before that. ^[14]

While these talks are not finalized, Bernstein analysts cited by Investopedia argue that Broadcom would be a “clear winner” from such a deal, as Google’s long‑term TPU partner and a supplier to Meta itself. ^[15]

Insider Monkey adds that:

Goldman Sachs recently raised its price target on AVGO from $380 to $435 and reaffirmed a Buy rating, explicitly highlighting AI revenue guidance for 2026 and expected contributions from Google and OpenAI.
Bank of America has called Broadcom as having the “upper-hand” in AI, expecting AVGO’s AI sales to grow more than 100% year‑over‑year in 2026, supported by additional TPU and Anthropic‑related projects.
Mizuho continues to label Broadcom its “TOP PICK,” pointing to Google’s reported plan to offer TPU capacity to Meta and growing AI demand from Anthropic as short‑term catalysts for Broadcom’s ASIC business. ^[16]

Together, these developments support the view that Broadcom sits at a critical chokepoint in the AI infrastructure stack: custom accelerators plus the high‑speed networking needed to connect massive AI clusters.

Q3 2025 Earnings: AI Revenue Soars, VMware Adds a Second Engine

Beneath the AI headlines, Broadcom’s recent earnings report offers hard numbers behind the hype.

Record Q3 figures

In its fiscal Q3 2025 results (released September 4), Broadcom reported: ^[17]

Revenue: Approximately $15.95–16.0 billion, up 22% year‑over‑year, beating analyst expectations.
Adjusted EPS:$1.69, ahead of consensus (~$1.65) and up from $1.24 a year earlier.
AI semiconductor revenue:$5.2 billion, up 63% YoY, marking 10 consecutive quarters of AI‑driven growth.
Segment mix:
- Semiconductor solutions revenue: $9.2 billion, up 26% YoY.
- Infrastructure software revenue: $6.8 billion, up 17% YoY, helped by the launch of VMware Cloud Foundation (VCF) 9.0.
Profitability & cash:
- Adjusted EBITDA: $10.7 billion, or 67% of revenue.
- Free cash flow: $7 billion, about 44% of revenue.
- Quarterly dividend: $0.59 per share, paid on September 30.

Strong Q4 guide and AI outlook

For Q4 2025, Broadcom guided to: ^[18]

Revenue of roughly $17.4 billion (+24% YoY).
AI semiconductor revenue of $6.2 billion, implying ~66% YoY growth.

Management has also emphasized a backlog of more than $10 billion in AI‑related orders, underscoring demand for its accelerators and networking chips from hyperscale cloud customers. ^[19]

While non‑AI semiconductor demand remains sluggish and is expected to decline mid‑single digits for the fiscal year, the company’s AI and software segments are more than offsetting that weakness.

VMware: Financial Tailwind, Customer and Legal Headwind

Broadcom’s $60+ billion acquisition of VMware continues to reshape the company’s business mix — and remains one of the most contentious elements of the AVGO investment case.

VMware’s contribution to growth

NetworkWorld and other enterprise‑IT outlets note that VMware has become a central pillar of Broadcom’s infrastructure software segment, contributing to double‑digit revenue growth and supporting the company’s high margins. ^[20]

Broadcom has:

Consolidated VMware products into VMware Cloud Foundation 9.0, pitching it as an “AI‑native” platform with integrated AI and data services. ^[21]
Shifted customers toward all‑in‑one subscription bundles, boosting recurring revenue and long‑term cash flow. ^[22]

This recurring software stream complements the more cyclical semiconductor business and is a key reason analysts argue Broadcom can sustain a premium valuation multiple.

Customer backlash and regulatory scrutiny

At the same time, the VMware acquisition has triggered significant customer resistance:

NetworkWorld has documented licensing overhauls, layoffs, product rationalization, and partner‑program changes, as well as multiple lawsuits connected to VMware since the Broadcom deal closed. ^[23]
Some enterprises and European cloud providers have complained about dramatic price increases and tighter license terms, prompting formal challenges such as an attempt by European cloud trade group CISPE to annul the EU’s approval of the acquisition. ^[24]

The most high‑profile case now in the spotlight is Fidelity vs. Broadcom.

Fidelity lawsuit: “Massive outages” risk

On November 17, 2025, Reuters reported that a Fidelity Investments subsidiary filed a lawsuit alleging that Broadcom is threatening to cut off access to key virtualization software — originally provided by VMware — that underpins Fidelity’s core systems. ^[25]

Key allegations include:

The software has been central to Fidelity’s operations since 2005, supporting trading and account access for roughly 50 million customers.
After the VMware acquisition, Broadcom is alleged to have restructured offerings into higher‑priced bundles and refused to renew Fidelity’s prior standalone subscription.
Fidelity warns of potential “massive outages” and trading disruptions if access is cut before it can migrate to alternative platforms, estimating that it needs 18–24 months to do so. ^[26]

Broadcom extended Fidelity’s access to January 21, 2026, to allow time for the court to decide on interim relief, but both sides have declined public comment.

For investors, the case reinforces two themes:

Short‑term legal and reputational risk around VMware licensing practices.
The strategic leverage Broadcom gains when its software becomes deeply embedded in mission‑critical infrastructure — which can support pricing power but also attract scrutiny.

Wall Street View: Bullish Targets, But Valuation Is Stretched

Despite customer friction and legal overhangs, Wall Street remains broadly bullish on Broadcom.

Consensus ratings and targets

Quiver Quantitative, which aggregates sell‑side research, reports that in the past six months: ^[27]

22 analysts have issued price targets on AVGO, with a median target of $400.
Recent targets include:
- $450 from Barclays.
- $435 from Mizuho.
- $420 from KeyBanc.
- $415 from Citigroup and UBS.
- $409 from Morgan Stanley.
Recent ratings skew overwhelmingly positive, with 18 Buy/Outperform/Overweight calls and no outright Sell ratings in the latest batch.

Insider Monkey and other outlets highlight Goldman Sachs’ move to lift its target to $435, while Bank of America and Mizuho continue to position Broadcom as a top AI pick heading into 2026. ^[28]

Scenario analyses: Can AVGO hit $700?

A detailed Trefis model published on November 25 argues that AVGO could potentially double to $700+ over the next few years under a bullish scenario where: ^[29]

Revenue climbs toward $120 billion by 2028, driven mainly by AI chips and VMware subscriptions.
Adjusted EPS rises from roughly $6.29 today to over $12.
The market continues to award Broadcom a premium P/E multiple around 60x due to its AI leadership and software recurring revenue.

That scenario depends on several assumptions — sustained AI capex, continued hyperscaler demand for custom chips, successful VMware integration, and stable macro conditions. Trefis also notes material risks around customer concentration, competition in custom silicon, and the historical volatility of AVGO shares.

Who’s Buying and Who’s Selling? Institutions vs. Insiders

Institutional demand

Broadcom remains heavily owned by institutions. MarketBeat and Quiver Quantitative note that: ^[30]

Around 76% of AVGO shares are in institutional hands.
In Q2 and Q3 2025, more than 2,000 institutional investors added AVGO, while roughly a similar number trimmed or exited their positions.
Large moves include UBS Asset Management adding over 31 million shares, while others such as Capital World Investors and Wellington Management reduced exposure.

Most recently:

Boston Partners increased its AVGO stake by 59.8%, buying 18,830 shares to reach 50,298 shares worth about $13.9 million as of its latest SEC filing. ^[31]

These flows suggest that — despite valuation concerns — many institutional investors still see Broadcom as a core AI and infrastructure holding.

Heavy insider selling

On the other side of the ledger, insiders have been net sellers:

Over the past six months, Broadcom insiders executed 96 open‑market trades, of which 93 were sales and just 3 were purchases, according to Quiver Quant. ^[32]
Notable selling includes:
- Co‑founder and chairman Henry Samueli, who sold more than 840,000 shares.
- CEO Hock Tan, who sold roughly 446,000 shares.
- Several other senior executives and directors trimming positions.

The most prominent insider buyer was director Harry L. You, who bought 3,550 shares in recent months. ^[33]

Insider selling at a stock’s highs is not unusual — particularly after a long run — but the scale of transactions may reinforce investor caution around valuation and cyclicality.

Risk Check: What Could Go Wrong for AVGO?

Even fans of the Broadcom story highlight several key risks:

Customer concentration in AI:
Broadcom’s AI revenue is heavily linked to a small group of hyperscale customers, notably Google and, increasingly, Meta and other cloud giants. A slowdown in spending or a decision to bring more chip design fully in‑house could materially impact growth. ^[34]
Intensifying competition:
Nvidia, AMD, Marvell and internal ASIC teams at hyperscalers are all racing to capture AI silicon and networking share. Trefis and other analysts warn that any sign of share loss or pricing pressure could compress both earnings and valuation. ^[35]
Valuation and volatility:
MarketBeat data suggest Broadcom trades around 100x trailing earnings, a steep premium even for a high‑growth AI leader. ^[36] Historically, AVGO has seen 50%+ drawdowns during market corrections, and scenario models emphasize that investors should be prepared for substantial volatility. ^[37]
Regulatory and legal risks from VMware:
The Fidelity lawsuit, European challenges to the VMware takeover, and multiple disputes over licensing and support underscore ongoing legal and regulatory exposure. ^[38]
Macro sensitivity:
Recent gains have also been supported by rising expectations of Federal Reserve rate cuts. If rates stay higher for longer or AI capex slows, high‑multiple AI infrastructure names like Broadcom could face a sharp rerating. ^[39]

Bottom Line: How to Think About Broadcom Stock After the AI Spike

As of November 30, 2025, Broadcom sits at the intersection of three powerful themes:

The AI infrastructure boom, through its custom accelerators and high‑speed networking chips for hyperscalers.
The cloud‑software and virtualization stack, via VMware and related infrastructure software.
The re‑rating of “picks and shovels” tech, as investors look for hardware and platform vendors that profit from AI workloads regardless of which model “wins.”

The latest news flow — from Gemini 3’s success and potential Meta–Google TPU deals to record AI revenue and bullish analyst calls — supports the view that Broadcom is one of the most important companies in the global AI supply chain. At the same time, lofty valuation, concentrated customer exposure, insider selling and VMware‑linked legal battles mean the stock carries meaningful downside risk if expectations slip.

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