NEW YORK, June 2, 2026, 18:05 (EDT)
- Broadcom finished at $481.57, gaining 4.7%. The stock reached $494.93 during trading.
- The stock jumped ahead of fiscal Q2 results, as investors watched for updates on AI-chip demand and outlook.
- Alphabet’s $80 billion equity raise aimed at AI infrastructure kept attention on Broadcom as a pick for supplying custom-chip projects.
Broadcom Inc. shares hit an all-time high Tuesday, gaining after Alphabet said it plans to raise $80 billion for AI infrastructure. The move pushed the chip stock higher ahead of its earnings release set for Wednesday.
Broadcom shares jumped 4.7% to $481.57, hitting a session high of $494.93. More than 37.5 million shares changed hands, much heavier than usual. The chipmaker’s market cap reached roughly $2.34 trillion.
Why now? Investors are already looking ahead and starting to bet on the next batch of custom AI chips and networking hardware—pieces for big data centers that shuttle data between servers. Alphabet announced Monday it plans $80 billion in equity offerings to help pay for AI compute infrastructure and keep up with what it calls “unprecedented customer demand.” SEC
Broadcom will release fiscal Q2 earnings after the close on Wednesday. The company plans to share a business outlook and take questions on a call set for 5 p.m. ET.
The stock swing pulled the chip sector higher. The iShares Semiconductor ETF added 5.7%. Marvell Technology, a top competitor in custom silicon and networking, soared 32.6%. Nvidia was down 0.7%. Alphabet, currently raising new funds, dropped 3.9%.
S&P 500 edged up 0.1% to a new high and the Dow climbed 0.4%. Nasdaq composite was mostly flat, gaining less than 0.1%. AI-linked names led the move, according to AP.
Broadcom’s target keeps rising. CEO Hock Tan in March said AI revenue for the first quarter jumped 106% to $8.4 billion, lifted by “robust demand for custom AI accelerators and AI networking.” He also said, “Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.” Broadcom Inc.
Broadcom CFO Kirsten Spears told analysts the company projects second-quarter revenue around $22 billion, a 47% increase from last year, with adjusted EBITDA pegged at roughly 68% of revenue.
Recent background comes from an April Reuters story. Broadcom has a long-term deal with Google to work on and deliver future custom AI chips and other hardware for Google’s next AI racks through 2031. That Reuters piece also said Broadcom and Anthropic locked in access to about 3.5 gigawatts of AI compute using Google chips starting in 2027.
Meta is also in the trade. Reuters said Meta extended its custom chip deal with Broadcom through 2029, promising more than a gigawatt of computing capacity to start. CEO Mark Zuckerberg said the move will help “build out the massive computing foundation we need to deliver personal superintelligence to billions of people.” Reuters
JPMorgan’s Harlan Sur is sticking with an Overweight call and a $500 target on Broadcom ahead of results, Benzinga said. Sur said Broadcom is “one to two steps ahead” when it comes to AI networking silicon. “We believe Broadcom’s Ethernet networking silicon powers the largest AI clusters for Google, Amazon, Meta, Alibaba, Oracle, ByteDance, and Tencent — and now Anthropic TPU clusters and OpenAI ASIC clusters,” Sur wrote. Benzinga
Bets in the options market go both ways here. Options pricing showed traders were looking for Broadcom to move roughly 9% after earnings this week, Investopedia said. Shares trade at about 120 times earnings, so there isn’t a lot of space for a weak outlook, a slowdown in AI demand, or signs that cloud customers are ordering less after the stock’s rally.
Investors are still paying up for scarce chips—custom hardware for AI setups and the networking silicon to connect it all. The focus on Wednesday will be whether Broadcom can cash in on that scarcity again and post numbers big enough to keep its record-high stock moving.
