movement: Broadcom stock rose 4% on Tuesday, extending its gains by a week. The company has been battling high volatility since the start of 2026, and is currently down 7% year-to-date.
why: Broadcom’s stock price rally on Tuesday could be driven by two new deals.
The company announced Monday in an 8-K filing that it has signed a long-term agreement with Google to develop custom Tensor Processing Units (TPUs), a type of AI chip designed to support machine learning workloads.
On the same day, Anthropic announced that Broadcom would help supply TPU computing power for the increasingly popular Claude platform. Anthropic also revealed it had signed a similar deal with Google, suggesting it continues to expand quickly as demand soars.
“This groundbreaking partnership with Google and Broadcom is a continuation of our disciplined approach to infrastructure expansion,” said Anthropic CFO Krishna Rao. “We are building the capabilities needed to meet the rapid growth of our customer base while enabling Claude to define the frontiers of AI development.”
what it means: Broadcom is not the only semiconductor stock that has fallen as the excitement around AI trading has waned since the start of 2026. Despite a year of strong growth, the company is still struggling to keep pace with industry leaders like Nvidia, and its stock price has fallen nearly 10% since the beginning of the year.
These recent developments bode well for a possible turnaround. Broadcom has successfully secured deals with two of Silicon Valley’s largest companies: an industry leader like Google and a fast-growing company like Anthropic.