Broadcom (AVGO) stock gained in early trading on Tuesday, after the company announced two separate deals for its custom AI processors on Monday, one with Google (GOOG, GOOGL) and the other with Google and Anthropic (ANTH.PVT).
The stock of the chipmaker rose more than 3% on the news, while the rest of the market largely declined due to President Trump’s latest Iran threats.
According to Broadcom’s 8-K, the company has entered into a long-term agreement to develop and supply future custom Tensor Processing Units (TPUs) to Google, as well as a supply assurance agreement under which Google will use Broadcom’s networking components in its next-generation AI server racks through 2031.
The companies didn’t disclose the financial terms of the agreements.
Broadcom also said it is expanding its current agreement with Google and Anthropic that will allow Anthropic to access 3.5 gigawatts of Google’s next-generation TPUs. That agreement is dependent on Anthropic’s continued commercial success.
But that doesn’t appear to be an issue for Anthropic at the moment. In a press release announcing the news, Anthropic noted that its revenue run-rate has surpassed $30 billion, up from $9 billion at the end of 2025 thanks to demand for the company’s Claude platform.
The number of businesses spending more than $1 million annually with Anthropic has also grown from 500 companies in February to 1,000 as of April 6.
BofA Global Research analyst Vivek Arya wrote in a note to investors on Monday that the moves provide greater visibility into Broadcom’s plans moving forward and, “remove some prior stock overhang” on fears that Google would insource some of its manufacturing through customer owned tooling or use other manufacturers like MediaTek.
Customer owned tooling (CoT) provides companies with greater oversight of the chip manufacturing process, but carries greater risk than fully outsourcing to a firm like Broadcom.
“We believe [Broadcom] is well-positioned to gain accelerator share in CY26 and CY27 (from <10% in CY25 toward ~15%+), now backed by further expansions with Google and Anthropic (on top of prior OpenAI 1-10 GW),” Arya wrote.
In his own note, Bernstein analyst Stacy Rasgon wrote that Broadcom’s Google deal is incremental, noting that it could help, “ease customer owned tooling fears, as well as seemingly give a solid datapoint that both Broadcom and their largest customer believe they have substantial demand visibility far out into the future (or at least 5 years).”
Broadcom stock has benefited handsomely from the AI boom, rising 110% over the last 12 months, but like many AI stocks has taken a step back since the start of the year, falling more than 6% during the period.
