Broadcom just became the sixth company in U.S. history to achieve this feat

By Hannah Pedone

Google's announcement of new TPUs help drive Broadcom's stock into record territory

Shares of Broadcom closed at an all-time high on Wednesday.

A strong day for chip stocks translated into a milestone moment for Broadcom.

Broadcom's market capitalization just passed the $2 trillion threshold, making the company just the sixth in U.S. history to achieve that feat. Nvidia (NVDA), Alphabet (GOOGL) (GOOG), Microsoft (MSFT), Amazon (AMZN) and Apple (AAPL) are the others, according to Dow Jones Market Data.

Shares of Broadcom (AVGO) rose roughly 5% on Wednesday and closed at a new all-time high, based on data going back to 2009. This was Broadcom's first new closing high of the year, according to Dow Jones Market Data.

Seaport Research analyst Jay Goldberg told MarketWatch that the main catalyst on Wednesday was Google's announcement of the eighth generation of its tensor processing units, which it developed with Broadcom.

Broadcom has a deal with Google to co-develop TPUs and provide networking equipment to the latter through 2031.

"There has been a lot of debate around the Street about whether Broadcom was losing share at Google to MediaTek or Marvell," Goldberg said. The announcement "doesn't prove anything," but reads positive for Broadcom, he added.

See also: Broadcom's stock is rising. Here's why its new Google and Anthropic deals are so significant.

Looking more broadly, Morningstar analyst William Kerwin said it was "definitely a good day for semis," pointing out that the iShares Semiconductor ETF (SOXX) was up roughly 3% on Wednesday and memory stocks including Micron Technology (MU) and SanDisk (SNDK) closed up over 8%.

Kerwin said that as the "lead, dominant designer" of Google's TPUs, Broadcom could see improved pricing and increased shipment volumes associated with the new chips, noting that each new generation of the TPU carries a higher price point due to higher memory content.

AI chip revenues - led by the TPU - are Broadcom's main growth and valuation driver, he noted. He has a $500 fair-value estimate on the stock, which finished the day at $422.65.

Don't miss: Intel's stock has been so strong that even skeptics have changed their minds

-Hannah Pedone

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-22-26 1720ET