Google, the crown jewel of Alphabet (GOOGL), is riding the artificial intelligence (AI) wave higher with a kind of momentum that feels almost effortless. On Nov. 18, it unveiled Gemini 3, its most advanced family of LLMs yet, earning an early verdict of clear and overwhelming dominance. Gemini 3 Pro shot straight to the top of LMArena’s leaderboard by Nov. 25 and sits firmly at No. 1 on the Artificial Analysis Intelligence Index with a score of 73, earning praise from evaluators as the best LLM.

But behind Google’s soaring AI story, the semiconductor and software powerhouse Broadcom (AVGO) is the quiet winner stepping into the spotlight. Investors have been connecting the dots fast, realizing that the semiconductor giant has been Google’s behind-the-scenes partner for years, building the tensor processing units (TPUs) that power Google’s biggest AI leaps. With Google’s latest deal with Anthropic and rising TPU demand, analysts are already naming Broadcom a top pick, even over Nvidia (NVDA).

Plus, Gemini 3 was trained entirely on Broadcom-linked TPUs, and the jump in Broadcom’s shares lately makes perfect sense. As Gemini 3 asserts its dominance, Broadcom’s role expands. With AVGO stock already soaring and analysts growing increasingly bullish, Broadcom is riding Google’s momentum and gearing up for an even bigger breakout ahead. Let’s take a closer look.

About Broadcom Stock

Founded in 1961 and headquartered in Palo Alto, California, Broadcom has evolved into a global technology leader with a market capitalization of approximately $1.8 trillion. The company’s portfolio spans advanced semiconductors and enterprise software, forming a critical foundation for cloud computing, high-performance data centers, mobile devices, and industrial automation.

Its consistent revenue and earnings growth reflect a durable competitive position across networking, wireless technologies, and specialized chip design. Today, Broadcom stands among the world’s most valuable and influential technology companies, recognized for its pivotal role in enabling modern connectivity and driving innovation across the digital infrastructure landscape.

AVGO shares have been advancing with remarkable force, firmly establishing the stock as one of Wall Street’s standout performers. Over the past 52 weeks, the stock has rocketed 126%, leaving the S&P 500 Index’s ($SPX) 13% climb and the Semiconductor iShares ETF’s (SOXX) 41% uptick far behind.

The backdrop is a roaring demand environment, and Broadcom is sprinting ahead of the pack. In just the past three months, the stock has ripped 15%, touching a fresh high of $403 recently. Momentum really kicked in after third-quarter earnings in September revealed a massive $10 billion custom-chip order, instantly lighting up trader enthusiasm.

The sparks kept flying on Nov. 24, when shares jumped 11% after reports confirmed Alphabet’s heavy reliance on Broadcom-designed TPUs to power its Gemini 3 model — a narrative investors loved. Layer on upbeat analyst calls and swelling expectations for AI-driven growth, and the sentiment around Broadcom has only grown stronger.

Technically, the 14-day RSI hovers around 59.7, retreating from overbought levels, signaling the stock has room to run before hitting resistance. The MACD line is turning upward, crossing above its blue signal line, suggesting bullish momentum is building. Together, these indicators point to a potential continuation of the recent uptrend, with momentum steadily picking up after short-term consolidation.

After a powerhouse rally, AVGO’s valuation sits firmly in the premium lane. The stock trades at 49 times forward adjusted earnings and nearly 31 times forward sales — levels far above sector averages. Yet investors are not blinking. That's a sign of strong belief in Broadcom’s ability to keep growing and defending margins. Such elevated multiples often signal a business built for durability, not just short-term momentum.

And even with all that growth, Broadcom still takes care of its shareholders. The company offers a forward dividend of $2.36 per share, yielding 0.62%, backed by years of hikes. The latest $0.59 per-share dividend was paid on Sept. 30. While Broadcom is pushing hard on expansion, it is also keeping its promise of steady returns and long-term stability.

Broadcom Tops Q3 Earnings Estimates

Broadcom’s stellar Q3 2025 earnings, released on Sept. 4, got Wall Street talking. The market reaction was immediate, as AVGO stock jumped 9.4% the next day and added another 3.2% after that. Revenue climbed 22% year-over-year (YOY) to $16 billion, topping expectations as the company’s two big engines — AI chips and VMware software — kept pushing growth higher.

The quarter also showed just how central Broadcom has become in the AI hardware race. Demand for its XPUs — the advanced custom chips built for heavy AI workloads — kept accelerating. AI revenue surged 63% annually to $5.2 billion, now making up a full third of the company’s sales. Management doesn’t see this slowing anytime soon.

XPUs alone accounted for 65% of Broadcom’s AI revenue, and the company’s total backlog swelled to $110 billion. On top of that, Broadcom has already locked in more than $10 billion in AI rack orders tied to XPU demand. Networking standouts like Tomahawk 5/6 and Jericho4 added even more lift. Big names like Alphabet, Meta Platforms (META), Nvidia, Dell (DELL), and others continued leaning on Broadcom’s tech, giving the company steady momentum.

Profitability kept the same strong rhythm. Adjusted EBITDA jumped 30% YOY to $10.7 billion, hitting 67% of revenue. Non-GAAP EPS came in at $1.69, and free cash flow surged 47% annually to $7 billion. With $9.47 billion in liquidity, Broadcom is in a comfortable spot. And it did not forget its shareholders — the company paid $2.8 billion in dividends during the quarter, showing it can grow fast while still returning plenty of cash to investors.

Broadcom is gearing up to report its fiscal Q4 results on Dec. 11, after the market closes, and expectations are running high. Management is calling for $17.4 billion in revenue, with adjusted EBITDA holding strong at 67% of sales. AI chip demand keeps rolling, too, and Broadcom expects AI semiconductor sales to hit $6.2 billion in Q4, marking the company’s 11th-straight quarter of AI growth.

Analysts are feeling upbeat as well. They are looking for Q4 EPS of about $1.49, up 19.2% YOY, and revenue of around $17.5 billion. For fiscal 2025, Wall Street sees EPS jumping 46% to $5.42, with another 42% surge to $7.68 in 2026. With AI chips flying off the shelves and VMware’s software engine adding steady fuel, Broadcom keeps stacking wins.

The Hidden Boost Broadcom Gets From Gemini 3

Google’s Gemini 3 is not just a headline-maker, but a direct revenue pipeline for Broadcom. Beyond the TPU partnership, every AI upgrade, every new model Google rolls out, pushes demand for more of Broadcom’s specialized chips. It's like a recurring engine — as AI workloads scale, TPUs also need to scale, and Broadcom is in the driver’s seat.

The Anthropic deal adds another layer, signaling that Google’s AI ecosystem is expanding, which could translate into multi-year TPU contracts and higher margins for Broadcom. Analysts are eyeing this closely, noting that Broadcom’s chips, while competitive, are becoming indispensable in a space that was until now dominated by Nvidia.

Combining that with Broadcom’s strong balance sheet and existing enterprise reach, the company is more than just a component supplier. It is positioning itself as a cornerstone of AI infrastructure. Every Gemini 3 update reinforces this, giving Broadcom a long runway of growth that’s hard to ignore.

What Do Analysts Expect for Broadcom Stock?

Analysts believe Broadcom has been the quiet builder behind the AI boom, making custom AI accelerators — XPUs — for giants like Google and OpenAI, which now drive most of its AI sales. With AVGO stock up 65% year-to-date (YTD) and nearing a $2 trillion value, the pressure is rising, too.

Goldman Sachs analyst James Schneider recently hiked his price target from $380 to $435, praising Broadcom as the ultimate “arms dealer” of the AI boom. Still, he stresses that expectations for Q4 are sky-high — investors want a beat, a raise, and a 2026 guide that surpasses $11 billion in AI revenue. In his view, when a stock runs this hot, even strong numbers can underwhelm.

Yet Schneider remains bullish, pointing to three investor flashpoints — Broadcom’s 2026 AI revenue outlook, the contributions from Google and OpenAI, and whether its soaring margins can hold as XPUs scale. With Google’s Gemini 3, trained entirely on Broadcom-linked TPUs, setting new performance bars, expectations have only intensified. And while the stock now trades at a premium, the analyst still frames Broadcom not as hype but as the hardware backbone on which the entire AI ecosystem depends.

AVGO stock carries a solid "Strong Buy” consensus rating, and analysts keep backing it. Of the 40 analysts tracking the stock, 34 have a “Strong Buy,” three advise a “Moderate Buy,” and three sit on the sidelines with a “Hold” rating.

AVGO’s massive run has already carried it close to the Street’s average target of $410.78. That has some investors questioning how much near-term upside is left. Still, the most bullish target on Wall Street of $535 points to a possible 40% climb. That basically shows how much confidence there is in Broadcom’s growing role in the AI chip world and the steady demand for its custom silicon.

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