By Jabin Bastian
Publication Date: 2026-04-07 19:41:00
Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) jumped 4.1% in the afternoon session after it announced a massive five-year deal with Google to design and supply custom AI chips.
These chips, known as Tensor Processing Units, will be used in Google’s data centers through 2031. The agreement also includes networking parts that help AI systems communicate. Investors were excited because this partnership secures a steady, long-term source of income from one of the world’s largest tech giants. It also confirms that Broadcom remains a critical player in the rapidly growing artificial intelligence market.
The stock also climbed due to an expanded partnership with the AI startup Anthropic. This deal allows Anthropic to access high-powered computing resources powered by Broadcom’s technology starting next year. Wall Street analysts suggest these new contracts could bring in billions of dollars more than previously expected.
After the initial pop…
