Broadcom (AVGO) shares rose 3.5% on Wednesday to close at $385.98, marking a new record high. The gain brought the stock’s year-to-date rise to 67.7%, as investors continued to favor companies building the core components of AI systems. The move also came on a strong day for major U.S. stock indexes, which each reached new highs.
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AI Partnerships Boost Confidence
The rally followed news that Nvidia (NVDA) and Oracle (ORCL) will build the largest AI supercomputer ever developed for the U.S. Department of Energy. The project, called Solstice, will run on 100,000 of Nvidia’s new Blackwell chips. Although Broadcom was not mentioned in the announcement, analysts believe its networking chips will be vital for linking the GPUs in the system. That expectation lifted demand forecasts for Broadcom’s data center products.
At the same time, Broadcom’s recently announced partnership with OpenAI (PC:OPAIQ) added another layer of optimism. The two companies will work together to design and deploy 10 gigawatts of custom AI accelerators valued at roughly $10 billion. The deployment is expected to begin in the second half of 2026. Broadcom Chief Executive Officer Hock Tan said the project will help “lay the groundwork for the future of AI.”
Growth in Software Adds Support
Broadcom’s performance is not driven by hardware alone. Its software division, expanded through the VMware acquisition, continues to grow steadily. The company’s latest quarter showed $6.8 billion in software revenue, up 17% from a year earlier. Commentators have noted that this business adds stability and recurring income, which supports its valuation during times of market volatility.
Wall Street remains confident in the stock. Citi analyst Christopher Danely recently reaffirmed his Buy rating with a $415 target. He cited expected gains from Broadcom’s role in expanding Google’s (GOOGL) AI chip ecosystem and its work with Anthropic (PC:ANTPQ). Danely projects that the company’s AI sales could quadruple by 2027, suggesting its current guidance already reflects strong momentum.
For now, Broadcom continues to benefit from its key role in AI infrastructure and steady growth in enterprise software. That mix keeps analysts focused on the company as one of the most consistent players in the fast-moving technology sector.
Is AVGO Stock a Buy?
On the Street, Broadcom has a Strong Buy consensus rating. Out of 29 analysts, 27 rate the stock a Buy. The average AVGO stock price target stands at $394.08, implying a 2.10% upside from the current price.
