By Unknown
Publication Date: 2026-02-06 20:55:00
What Happened?
Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) jumped 7.6% in the afternoon session after Wall Street digested the significant revenue potential from recent AI capital expenditure plans announced by key customer Google.
Google announced plans to spend between $175 billion and $185 billion on AI infrastructure in 2026, marking one of history’s largest AI buildouts. Broadcom had secured $21 billion in orders from Google for its custom TPU AI accelerators. Broadcom itself had guided for its own AI revenue to reach $8.2 billion in the first quarter of 2026, which represented 100% growth from the previous year. In response to the developments, Wolfe Research upgraded the stock to Outperform, highlighting increased confidence in Google’s program and Broadcom’s role as a key supplier. Jefferies also reiterated its Buy rating, citing the company’s strong position in AI and networking markets.
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