TLDR
- Broadcom stock rose 6.8% pre-market to $491.09, pushing its market cap above $2 trillion
- Alphabet’s $80 billion equity plan for AI infrastructure boosted Broadcom, which helps design its custom chips
- Nvidia CEO Jensen Huang suggested Marvell could hit a $1 trillion valuation, lifting Broadcom as a comparable chipmaker
- Susquehanna raised its price target from $450 to $490, maintaining a Positive rating ahead of Q2 results on June 3
- UBS also raised its target to $490 with a Buy rating, noting the revised Anthropic order carries higher margins despite lower revenue
Broadcom stock jumped 6.8% in pre-market trading on Tuesday, hitting $491.09, as two separate market stories gave the chipmaker a lift on the same morning.
The move pushed Broadcom’s market cap above $2 trillion, making it the seventh largest company in the world by that measure.
The first catalyst came from Alphabet, which announced a plan to issue $80 billion in equity to fund AI infrastructure. The market had a mixed reaction to the news overall.
But it was good news for Broadcom. Alphabet is expected to use the funds to build out data centers powered by its own custom chips — chips that Broadcom helps design.
The second boost came from Nvidia CEO Jensen Huang, who said Marvell Technology could reach a $1 trillion valuation. That would represent roughly a 400% jump from where Marvell trades today.
Broadcom and Marvell operate in similar product areas, and Huang’s comments appeared to lift both stocks. Marvell rose 7% on the day.
Broadcom had already been on a strong run heading into Tuesday. The stock is up 79% over the past 12 months through Monday’s close, driven by rising demand for AI chips.
Wall Street Raises Price Targets
The pre-market move also comes days ahead of Broadcom’s fiscal second-quarter 2026 earnings, scheduled for June 3.
Susquehanna analyst Christopher Rolland raised his price target on the stock from $450 to $490 on May 28, keeping a Positive rating. The firm updated its model ahead of results and expects custom XPU momentum to continue alongside strong TPU demand.
Susquehanna did flag one change. Broadcom’s initial TPU shipments to Anthropic no longer include racks, which led the firm to trim its custom XPU revenue forecast for calendar year 2026.
UBS made a similar move on May 18, lifting its target from $475 to $490 while holding a Buy rating.
UBS also pointed to the Anthropic order shift — from full racks to a more standard ASIC arrangement. That change cuts the expected revenue to around 25% of the original figure.
Anthropic Order Shift
However, UBS noted the revised structure is expected to generate significantly higher margins, which could offset some of the revenue impact.
Both banks now sit at $490 as their price target, with Broadcom trading just above that level pre-market at $491.09.
The stock’s earnings report on June 3 will be closely watched given the Anthropic order changes, ongoing AI chip demand, and whether the company updates its outlook.
Broadcom finished Monday with a market cap just crossing the $2 trillion threshold, a level only a handful of companies globally have reached.
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