This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) shares climbed more than 6% on Friday, extending gains as investors continued to cheer long-term artificial intelligence supply agreements with Google and Anthropic first disclosed earlier this week.
The stock has now added to a midweek surge that followed news of a multi-year pact to provide custom AI processors to Alphabet’s (NASDAQ:GOOGL) Google. A separate expanded collaboration with AI startup Anthropic further cemented Broadcom’s position in the semiconductor supply chain for large-scale computing infrastructure.
Broadcom’s AI semiconductor revenue reached $8.4 billion in its fiscal first quarter, more than double the year-ago figure. Management has targeted $10.7 billion for the second quarter and sees a path toward exceeding $100 billion in AI sales by 2027.
The deals with Google and Anthropic lock in revenue visibility through 2031, a factor that may help Broadcom navigate broader macroeconomic uncertainty. Analysts maintain a largely bullish outlook on the chipmaker, with a consensus price target above $470.
