This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) shares climbed about 3% on Wednesday morning after the company deepened its artificial intelligence partnership with Meta Platforms, extending collaboration on custom chips through 2029.
Broadcom said the agreement with Meta will focus on developing specialized processors under Meta’s MTIA program, which supports AI training and inference workloads across its platforms. The initial phase includes deployment exceeding one gigawatt of compute capacity, with plans for a broader multi-generation rollout.
Broadcom also continues its long-term relationship with Alphabet, which runs through 2031 and includes development of next-generation Tensor Processing Units and networking infrastructure. The dual partnerships position Broadcom as a key supplier of custom silicon for large-scale AI systems.
The momentum comes as Broadcom stock has gained roughly 21% over the past two weeks, reflecting investor interest in AI infrastructure plays. Analysts remain broadly constructive, citing sustained demand for custom chips as major technology companies expand compute capacity.
