In the extended session that started with the April 6 closing bell, Broadcom (NASDAQ: AVGO) stock resumed its weekly rise with a 3.58% rally from $314.43 to $325.70.
This latest upswing for AVGO shares came following the announcement that the American semiconductor and infrastructure company entered into a multi-year agreement with the blue-chip technology giant Google (NASDAQ: GOOGL) and the artificial intelligence (AI) firm Anthropic.
Under the terms of the deal – set to run through to 2031 – Broadcom is set to develop and supply the next generation of custom AI chips for the world’s largest search engine company. Simultaneously, it will provide Anthropic with approximately 3.5 gigawatts of computing power, drawn from Google’s capacity.
Notably, the relevant press releases and regulatory filings do not provide insights into the value of the agreement, though they do note that the capacity provided is conditional ‘on Anthropic’s continued commercial success.’
Anthropic recently claimed that its annualized revenue crossed above $30 billion, marking a massive rise from $9 billion earlier in 2026.
Though the figure is impressive, multiple expert observers such as Ed Zitron regularly urge caution regarding the numbers published by private AI companies, both due to a lack of independent verification and the discrepancy with those known from similar public companies.
Is Broadcom stock about to reverse the 2026 AVGO downturn?
Elsewhere, the landmark, long-term agreement promises to help Broadcom stock reverse its 9.55% decline in 2026 and potentially send it back toward the $400 highs recorded late in 2025.
Some hints of the long-term, positive trend are evident in the technical analysis (TA) readings Finbold retrieved from TradingView on April 7. Indeed, both the moving averages (MA) and the overall recommendation based on the last 30 days in the market position AVGO shares as a ‘Buy.’
On the flip side, one-month oscillators continue to interpret Broadcom stock as a sell, while the overall picture based on the last 24 hours – admittedly, with the extended session excluded – and the last week range between ‘Neutral’ and ‘Sell,’ demonstrating the persistent uncertainty.
As for the scale of the potential upcoming upside, Wall Street analysts are, on average, expecting nearly a 50% rally above $470, with even the lowest 12-month forecast of $360 being above both the latest closing price and the press time price.
The bullish outlook is reinforced by the fact that the ‘Strong Buy’ rating and the high price target are based on all notes issued in the last three months, meaning they overwhelmingly precede the latest deal with Google and Anthropic.
Why investors should remain cautious despite AVGO stock tailwinds
Still, it is worth noting that the Broadcom stock ‘Buy’ recommendation, strengthened by the agreement with the two other technology companies, remains contingent on the continuation of the AI boom.
While most executives within the industry and a majority of institutional analysts appear confident that the technology will continue advancing and proliferating, there remain multiple reasons for caution.
One of the critical issues the AI sector is yet to address is profitability and, indeed, though massive profits are continuously forecasted in the mid and long term, the outlook for 2026 remains dubious.
More recently, the number of data center projects that have been either delayed or cancelled calls into question the actual ability of the industry to provide the infrastructure needed in a timely manner, even if the hoped-for demand genuinely materializes.
Featured image via Shutterstock
