Broadcom stock set to reverse 2026 downturn after Google AI deal with Anthropic

In the extended session that started with the April 6 closing bell, Broadcom stock resumed its weekly rise with a 3.58% rally from $314.43 to $325.70.

The latest upswing for AVGO shares followed the announcement that the American semiconductor and infrastructure company entered into a multi-year agreement with Google and Anthropic.

Deal details: custom AI chips and computing power through 2031

Under the terms of the agreement, set to run through 2031, Broadcom will develop and supply the next generation of custom AI chips for Google. In parallel, the company will provide Anthropic with approximately 3.5 gigawatts of computing power, sourced from Google’s capacity.

Press releases and regulatory filings tied to the announcement do not disclose the agreement’s financial value. They also note that the computing capacity provided is conditional on Anthropic’s continued commercial success.

Context: Anthropic revenue claim and the verification gap

Anthropic has said its annualized revenue has crossed above $30 billion, up from $9 billion earlier in 2026.

However, the article notes that some observers, including Ed Zitron, have urged caution about figures published by private AI companies, citing a lack of independent verification and differences from metrics seen in comparable public companies.

Market reaction and outlook: technical signals and analyst targets

The agreement is also framed as a potential catalyst for Broadcom stock to reverse its 9.55% decline in 2026 and move back toward the $400 highs recorded in late 2025.

Technical analysis cited from TradingView on April 7 showed both moving averages and the overall recommendation based on the last 30 days positioning AVGO shares as a “Buy.” At the same time, one-month oscillators were described as interpreting the stock as a sell, while the broader view based on the last 24 hours (excluding the extended session) and the last week range between “Neutral” and “Sell,” reflecting ongoing uncertainty.

Wall Street analysts, on average, are expecting nearly a 50% rally above $470. The lowest 12-month forecast mentioned is $360, which the article states is above both the latest closing price and the press-time price.

Why investors may stay cautious despite tailwinds

Even with the “Buy” stance strengthened by the Google and Anthropic deal, the article highlights that the positive view remains tied to the continuation of the AI boom.

It points to unresolved issues in the sector, including profitability. While large profits are forecast over the mid and long term, the outlook for 2026 is described as less certain.

The article also cites concerns about execution risk, noting that the number of data center projects that have been delayed or cancelled has raised questions about whether the industry can deliver the required infrastructure on time, even if demand materializes.