Broadcom Stock Just Hit A Record High. You Can Thank Nvid…
Alphabet makes a big, bold bet
After the market close on Monday, Alphabet (GOOGL 3.96%) (GOOG 3.92%) unveiled plans that made investors sit up and take notice. In a press release, the Google parent announced a proposed $80 billion equity capital raise “to expand AI infrastructure and compute.”
To that end, Alphabet reached an agreement with Berkshire Hathaway for a $10 billion private stock placement, adding to a stake the company has been building since late last year. In addition, several large investment banks have agreed to buy $30 billion of Alphabet stock to sell to clients, while the remaining $40 billion will come from sales of its Class A and Class C s, which will be sold on the open market beginning in the third quarter.
So what does this have to do with Broadcom? The company is the leading provider of Application-Specific Integrated Circuits (ASICs), a family of specialized chips that can be customized to be more efficient and boost performance for specific AI tasks. Google’s Tensor Processing Units (TPUs) are one example of these specialty chips. Broadcom helps to design and manufacture the high-performance cores that power Google’s TPUs.
The magnitude of Alphabet’s spending to build out its AI infrastructure suggests Broadcom will profit from its ongoing partnership with Google.
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NASDAQ: GOOGL
Alphabet
Today’s Change
(-3.96%) $-14.89
Current Price
$361.48
Key Data Points
Market Cap
$4.6T
Day’s Range
$358.47 – $373.53
52wk Range
$162.00 – $408.61
Volume
2M
Avg Vol
28.3M
Gross Margin
60.43%
Dividend Yield
0.22%
Nvidia CEO Jensen Huang makes a big, bold prediction
During a presentation at Nvidia‘s GPU Technology Conference (GTC) Taipei on Monday, CEO Jensen Huang made a statement that got tongues on Wall Street wagging. The enigmatic chief executive appeared on stage with Marvell Technology (MRVL +32.71%) CEO Matt Murphy, saying the company is “going to be the next trillion-dollar company.”
What made that statement all the more eye-opening is the fact that Marvell started the week with a market cap of just $179 billion, suggesting a more than fivefold increase. Furthermore, there are four dozen companies with higher market caps, any one of which could outpace Marvell and get to the $1 trillion club sooner.
Marvell stock has experienced a meteoric rise and had already gained 141% in 2026 by the close of trading on Friday. Huang’s pronouncement lit a fire under the stock, which is up 61% over the past two days.
Again, you ask, what does this have to do with Broadcom? Marvell is a direct rival of Broadcom’s in the networking and data center connectivity space, and the two compete head-to-head in designing custom data center processors. This suggests that if demand for AI infrastructure is sufficient to lift Marvell’s stock price to that degree, it also bodes well for Broadcom and its holders.
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NASDAQ: AVGO
Broadcom
Today’s Change
(4.85%) $22.31
Current Price
$482.28
Key Data Points
Market Cap
$2.2T
Day’s Range
$470.41 – $488.80
52wk Range
$241.11 – $488.82
Volume
1.7M
Avg Vol
23.9M
Gross Margin
64.96%
Dividend Yield
0.54%
We’ll know soon enough
The market has set a high bar for Broadcom ahead of the company’s Q2 earnings report, which is scheduled for after the market close on Wednesday. Broadcom is expected to continue its feverish growth.
In its fiscal 2026 first quarter (ended Feb. 1), the company generated revenue that grew 29% year over year to $19.3 billion, driving its adjusted earnings per (EPS) up 28% to $2.05. The headline was the company’s AI solutions, which grew 106%. Management’s outlook suggests Broadcom’s blistering run is poised to continue, as the company is guiding for revenue growth of 47% to of $22 billion, and adjusted EBITDA to rise 50% to roughly $14.96 billion.
Even after hitting a record high today, Broadcom’s price/earnings-to-growth (PEG) ratio — which takes into account the company’s rapid growth — returns a multiple of 0.59, when any number less than 1 suggests an undervalued stock.
That’s why I’m convinced that Broadcom stock is still a buy, despite its relentless run.
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•By Danny Vena, CPA
Is Broadcom Stock a Buy Ahead of Its Q2 Earnings Report After Market Close on Wednesday?
About the Author
Danny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.
Stocks Mentioned
Broadcom
NASDAQ: AVGO
$482.28
(+4.85%)+$22.31
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Alphabet
NASDAQ: GOOGL
$361.48
(-3.96%)-$14.89
Alphabet
NASDAQ: GOOG
$358.39
(-3.81%)-$14.19
Marvell Technology
NASDAQ: MRVL
$291.20
(+32.71%)+$71.77
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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