Broadcom Stocks Jump 8.21% as Investors Eye $21.7 Billion AI Revenue Guide

Broadcom Inc. (AVGO) rose 4.2% to $332.86, supported by JPMorgan's Overweight rating and analyst Harlan Sur's view that Google's AI chip aligns with Broadcom's roadmap, ensuring revenue visibility through 2031. Institutional buying and AI commitments from Anthropic also boosted the stock, despite a broader market decline.

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

NVIDIA's stock fell 4% to $170.67 after its board launched an investigation into CEO Jensen Huang. The probe follows reports of an alleged extramarital affair and potential national security concerns. NVIDIA's Q2 FY2027 revenue was $96.22 billion, up 105.8% YoY, with strong guidance for Q3. AMD and Broadcom gained 3% as investors rotated to rivals. The outcome of the board's investigation and NVIDIA's next earnings report are key catalysts.

Seven tech companies, including Alphabet, Nvidia, and Microsoft, reportedly plan to invest $26 billion in Anthropic's IPO. The companies involved are Alphabet, Nvidia, Microsoft, AMD, Broadcom, Micron Technology, and Taiwan Semiconductor Manufacturing. Anthropic has not confirmed the figure, and the reported pricing was deemed inaccurate. The investment would be alongside the IPO offering, with Google having an option to buy up to $10 billion in Class N stock.

Morgan Stanley reports that U.S. election uncertainty has delayed some 2028 data center projects to 2029, but the long-term AI investment thesis remains intact. The firm recommends a 'buy-the-dip' strategy for large cloud providers and AI-related stocks, citing strong long-term demand.

Morgan Stanley recommends buying semiconductor stocks, citing attractive valuations and strong industry fundamentals. Nvidia (NVDA) and Broadcom (AVGO) are top picks, trading at 9x 2028 P/E. The report highlights GPU/XPU compute and memory as preferred sub-sectors, with SanDisk (SNDK) and Micron (MU) also mentioned as attractive.