Broadcom (NASDAQ: AVGO) continued its month of making deals related to artificial intelligence (AI) with an agreement with Meta Platforms (NASDAQ: META) on April 14 and was, seemingly, immediately rewarded in the stock market.
Specifically, the software infrastructure and semiconductor company revealed that it will be supplying the social media giant with the industry-first 2nm AI compute accelerator over the coming three years. The partnership will also see the two firms ‘deeply co-develop and optimize Meta’s AI infrastructure across multiple silicon generations,’ per the press release.
Earlier in April, Broadcom also entered into an agreement to develop and supply next-generation custom AI chips to Google (NASDAQ: GOOGL) and 3.5 gigawatts of computing power to Anthropic.
Broadcom stock reacts to the Meta AI deal
Simultaneously, the Meta partnership provided AVGO stock with a significant tailwind as evidenced by the fact that the equity soared 3.22% in the extended session leading into April 15 after a relatively flat April 14 regular session.
Broadcom shares were changing hands at $380.72 at the Tuesday close and are, at press time, at $392.97.
The two major April deals have also helped AVGO equity erase its previous losses and turn its year-to-date (YTD) performance green. Indeed, between January 2 and April 6, Broadcom stock dropped nearly 10%, while the subsequent rally ensured the shares have gained 9.52% in 2026 in total by the most recent closing bell.
Furthermore, given the companies involved, AVGO appears likely to continue rallying through the year as well as through the duration of the three agreements.
Why Broadcom stock is a ‘Buy’ in 2026
Indeed, the partnership with Meta might be a particularly important boon as Mark Zuckerberg is, reportedly, heavily personally invested in the novel technology and even physically moved his desk to the AI division while starting to code again.
Wall Street is likewise confident that Broadcom shares will continue rising, considering the overall ‘Strong Buy’ rating displayed on the stock analysis platform TipRanks. Additionally, not only is AVGO expected to rally nearly 22% to $464.32 in the coming 12 months on average, but none of the forecast revisions out by press time on April 14 account for the Meta deal.
Elsewhere, it is notable that despite Broadcom now boasting collaborative agreements with some of the biggest and wealthiest companies that have rendered AVGO shares a fairly safe ‘Buy,’ there remains some room for caution.
The 2026 Broadcom stock bear case
Specifically, the company’s fate has become increasingly tied to the continuation of the AI boom, which, while boasting significant Wall Street and executive confidence, has also suffered multiple setbacks.
Adoption of artificial intelligence in corporate environments is, on the one hand, increasingly astroturfed and allegedly resisted by actual employees, and has, on the other, reportedly led to little tangible benefit for most organizations.
Simultaneously, the vast planned infrastructure buildout has become, by April 2026, mired in cancellations and delays.
For example, after freezing the Stargate UK project, OpenAI has stepped back from its data center in Narvik, Norway, with Microsoft (NASDAQ: MSFT) taking over the site.
Notably, the blue-chip technology giant already unveiled plans to rent out the 30,000 Nvidia (NASDAQ: NVDA) Vera Rubin chips from the location despite the data center itself still being under construction and the chip series being scheduled for release only in the second half of 2026.
Featured image via Shutterstock
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