Catenaa, Tuesday, April 07, 2026- Broadcom stock rose on Tuesday after the chip designer announced it would produce future versions of AI chips for Google and signed an expanded deal with Anthropic.
The latter deal will give the AI startup access to about 3.5 gigawatts worth of computing capacity, drawing on Google’s AI processors and providing some relief for the share price.
Broadcom stock has endured a tough start to 2025, falling over 6% year-to-date as investors have become increasingly jittery around the bull case for technology stocks.
It has also been caught up in the maelstrom of the wider market caused by the US-Israeli attack on Iran that began on February 28.
The drift downwards comes despite a blowout earnings report in March, during which CEO Hock Tan touted strong future demand for the company’s chips.
He told analysts last month that he anticipates AI chip revenue in 2027 that’s “significantly in excess of $100 billion” as demand mounts for designing custom silicon.
The new Broadcom deal fits into a wider push across big tech to secure long-term chip supply as demand for AI training and inference capacity climbs.
For Alphabet, controlling more of its own silicon is one way to support its AI models and cloud clients while keeping an eye on unit economics.
Analysts remain bullish following Monday’s announcements.
Citi analysts maintained their ‘Buy’ rating for the stock, backing Broadcom to surpass its $100 billion revenue target to more than $130 billion off the back of the Google deal.
For readers, the agreement highlights how seriously Alphabet is treating AI hardware as part of its broader AI stack, from chips to data centers to software.
The extended partnership with Anthropic also signals that Alphabet aims to be a key supplier of AI compute, not just a consumer of it, which could influence how its cloud and AI-related revenue mix develops over time.
The Broadcom deal locks in AI chip supply through 2031, which could support Alphabet’s AI training and inference capacity for Google Cloud and in-house products.
Meanwhile, Anthropic reported a $30 billion revenue run rate, up from $9 billion at the end of 2025.
The acceleration appears tied to enterprise adoption of its Claude services, where more than 1,000 customers are now spending over $1 million annually, a figure that has more than doubled since February.
The trajectory suggests AI workloads are moving deeper into enterprise budgets, even as the company continues to navigate a dispute with the US government that it has said could potentially impact revenue.
The scale of Anthropics future compute consumption remains linked to its ability to sustain commercial traction, leaving both execution and regulatory developments as variables that could shape the trajectory from here.
