Shares in Broadcom
rose 3.7% in premarket trading on Tuesday after the chip designer announced it would produce future versions of artificial intelligence chips for Google, and signed an expanded deal with Anthropic.
The latter deal will give the AI startup access to about 3.5 gigawatts worth of computing capacity, drawing on Google’s AI processors and providing some relief for the share price.
Broadcom stock has endured a tough start to 2025, falling almost 10% year-to-date as investors have become increasingly jittery around the bull case for technology stocks. It has also been caught up in the maelstrom of the wider market caused by the U.S.-Israeli attack on Iran that began on February 28.
The drift downwards comes despite a blowout earnings report in March, during which CEO Hock Tan touted strong future demand for the company’s chips.
