This AI chip stock is getting a big boost from Google’s Hot Streak

Alphabet stock has been on a boom lately. One of the big beneficiaries of this move? Broadcom.

A rise in shares of Alphabet, Google’s parent company, has helped inject some energy back into the faltering AI trade. This had knock-on effects on a range of technology stocks, although few benefited as much as Broadcom (AVGO), which counts Google as a major customer for its AI chips.

Broadcom shares have been on the rise lately, rising alongside Alphabet (GOOGL, GOOG), which has been lifted by a series of positive developments for the cloud giant from a vote of confidence from Warren Buffett’s Berkshire Hathaway to the upbeat reception of its latest AI model and signs of a new deal involving its chips.

Alphabet shares rose about 2% to close at a new high on Tuesday, and have added about 17% since Berkshire’s stake was disclosed in a regulatory filing just over a week ago.

Meanwhile, Broadcom stock rose about 12% over the same period. Shares rose nearly 2% on Tuesday to near all-time highs, while Nvidia (NVDA), Advanced Micro Devices (AMD) and other chipmakers gave back gains.

Thanks to its recent gains, Broadcom stock is up nearly 70% for the year, making it one of the best-performing stocks in the S&P 500 this year so far. It beats Nvidia’s roughly 33% rise in 2025, along with the rest of the Magnificent 7.

Broadcom “will be the clear winner” in the chip deal reported in the works between Meta (META) and Google, as Google’s preferred partner for custom chips and a supplier to Meta, Bernstein analysts said in a note Tuesday.

“While the cost of the stock is rising, this may be justified because we still believe that Street estimates appear too low,” the analysts said. Bernstein maintained an “outperform” rating and a $400 target on shares. All 12 analysts with current ratings surveyed by Visible Alpha consider the stock a buy, even though it beat their average target by about $378.

There is still some optimism in Bernstein’s outlook for Nvidia. Its analysts reiterated a bull rating and $275 target on shares, saying growing demand for AI hardware is likely to benefit it and Broadcom.

Broadcom’s got the narrative right now, however [Nvidia’s] “Valuation looks increasingly attractive and the sell-off appears overdone to us,” they said. “We will be buyers (and continue to like both stocks).”