Wood’s ARK Invest purchased $20 million shares of Broadcom on Wednesday.
- AVGO rebounded premarket after shares plunged on Wednesday following the announcement of a Google chip deal with Marvell Technology.
- Broadcom is scheduled to report its third-quarter results on Sept. 2.
- Retail sentiment for AVGO was ‘bullish’ on Thursday.
Broadcom shares rose 1% in premarket trading on Thursday, recovering slightly from a selloff the previous day triggered by Google announcing a chip deal with smaller rival Marvell Technology.
Investors grew concerned that Google’s new custom-chip partnership with Marvell risks Broadcom’s position as Google’s primary TPU partner, sending AVGO stock nearly 5% on Wednesday.
Meanwhile, Cathie Wood’s ARK Invest picked up Broadcom stock on the dip. The investor purchased 55,548 shares worth over $20 billion. ARK Invest also bought more shares of Cerebras Systems and further trimmed its holding in Advanced Micro Devices.
Broadcom Still At The Center Of AI Chip Boom
In recent months, Broadcom has deepened its position in the AI infrastructure market, with second-quarter AI semiconductor revenue surging 143% year over year to $10.8 billion.
The company launched a $35 billion AI infrastructure financing platform with Apollo and Blackstone aimed at enabling more than 20 GW of AI capacity, while expanding major relationships with Google, Anthropic, Meta and OpenAI.
In June, Broadcom and OpenAI also unveiled Jalapeño, a custom inference accelerator designed for OpenAI’s LLM workloads and expected to enter production later this year.
Broadcom also reiterated its target of more than $100 billion in AI semiconductor revenue in 2027, although its shares came under pressure after its latest forecast fell short of elevated investor expectations.
AVGO: Results Watch, Retail View
Broadcom is scheduled to report its third-quarter results on Sept. 2. Analysts expect revenue to rise 85% to $29.4 billion and adjusted profit to rise 92% to $3.24 per share.
On Stocktwits, the retail sentiment for AVGO has risen over the past week and was ‘bullish’ on Thursday. “$AVGO if you sold today instead of buying and you traded your shares for Marvell thinking it’s better, don’t quit your day job,” a trader said in a lighter vein.
Year to date, AVGO shares have gained a modest 5%, with investors and analysts expecting the stock to pick up momentum in due course.
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