Broadcom stock pops after the chip giant inks fresh AI deals with Google and Anthropic
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- Broadcom stock rose on Tuesday after the company announced an AI chip deal with Google.
- On the same day, Anthropic named Broadcom as a new partner to supply compute power.
- The developments are boosting Broadcom stock as the company looks to mount a comeback.
The move: Broadcom stock jumped 4% on Tuesday, extending a week of gains. The chip maker has been battling high volatility since 2026 began and is currently down 7% year-to-date.
Why: Broadcom's positive stock momentum on Tuesday can be attributed to two new deals.
The company announced on Monday in an 8-K filing that it has entered into a long-term agreement with Google to develop custom Tensor Processing Units (TPUs), a type of AI chip designed to support machine learning workloads.
On the same day, Anthropic announced that Broadcom will help supply TPU compute capacity for its increasingly popular Claude platform. Anthropic also revealed a similar deal with Google, signaling that it is maneuvering quickly to continue scaling as demand surges.
"This groundbreaking partnership with Google and Broadcom is a continuation of our disciplined approach to scaling infrastructure," stated Anthropic CFO Krishna Rao. "We are building the capacity necessary to serve the exponential growth we have seen in our customer base while also enabling Claude to define the frontier of AI development."
What it means: Broadcom isn't the only chip stock to be dented by waning excitement for the AI trade since 2026 began. Despite its strong year of growth, it has still struggled to keep pace with industry leaders such as Nvidia, with the stock down nearly 10% year to date.
These recent developments bode well for its chances at a turnaround. Broadcom has managed to ink deals with two of Silicon Valley's biggest names, an industry leader like Google and a fast-growing firm like Anthropic.