Broadcom Stock Just Scored a New Bullish Rating. Here's Why.

TSMC proposed a shared takeover of Intel's chip foundries with NVIDIA, Broadcom, and AMD, aiming for less than 50% ownership. Intel is divided on the deal, and TSMC seeks partners who are Intel's advanced-manufacturing customers. The companies face challenges due to differing processes and trade secrets. U.S. President Donald Trump encouraged TSMC to assist Intel, aiming to strengthen domestic production. Intel has struggled amid industry shifts, with TSMC investing $160 billion in U.S. data cen

Broadcom (AVGO) stock rose 1.2% on Friday, outperforming the S&P 500, after BMO Capital Markets initiated coverage with an outperform rating and a $455 price target. Analyst Harsh Kumar ranked Broadcom second in the semiconductor sector, citing the growing AI trend. J.P. Morgan's Nikolaos Panigirtzoglou also noted AI-related revenue supporting capital expenditures.

Broadcom is seeking a $70B-$80B loan, potentially up to $100B, to fund AI chip deals with firms like Anthropic. Private equity firms Blackstone and Apollo are considering participation. The loan includes a $45B senior portion and a $35B subordinate tier. Broadcom's stock rose 1% on Friday. Nvidia also announced a $105B funding deal with OpenAI and a $500B initiative with investment firms.

Broadcom (AVGO) shares fell 5% to $359.66 after Marvell (MRVL) secured a $12.18B deal with Google (GOOGL) for custom AI chips, threatening Broadcom's exclusivity. AVGO's YTD gain of 10% lags peers AMD (126%) and NVDA (18%). Concerns over VMware security and off-balance-sheet financing also pressured AVGO.

Marvell (MRVL) rose after Alphabet (GOOGL) extended a partnership, while Broadcom (AVGO) fell. Marvell will supply components for Alphabet's TPUs, receiving warrants for 58.97M shares. Broadcom remains Alphabet's primary TPU design partner. Broadcom expects $100B in custom chip revenue by fiscal 2027, trading at a forward P/E of 18.5. Marvell's stock has tripled but trades at a higher P/E of 57.5.

Broadcom is seeking $70B-$80B in debt to fund an AI chip financing deal, with lenders targeting $45B senior and $35B junior tranches. The financing, involving Blackstone and Apollo, will support AI companies like Anthropic. Broadcom's stock rose over 1% on Friday.