Broadcom Stock Surges on AI Infrastructure Demand

Broadcom shares are delivering an impressive performance that stands out even within the thriving semiconductor sector. The stock has gained more than 11% in just a few trading sessions, approaching new record highs as investors respond to developments confirming the company's crucial position in the artificial intelligence ecosystem. With quarterly earnings approaching, market participants are weighing whether this momentum can continue or if a consolidation phase is likely.

The company faces a significant test on December 11 when it releases quarterly results. Market expectations appear exceptionally ambitious:

• Revenue: Analysts project $17.46 billion, representing 24% year-over-year growth
• Earnings per share: Estimates stand at $1.87, more than double the $0.90 reported in the same quarter last year
• Full-year outlook: Experts forecast annual revenues reaching $63.33 billion

These optimistic projections are already reflected in the current share price. Given the elevated valuation, any disappointment in the actual results could trigger substantial volatility.

Google Collaboration Fuels Investor Enthusiasm

The primary catalyst behind the recent rally stems from Broadcom's expanding role within Google's AI infrastructure. The semiconductor specialist is providing custom silicon solutions for Google's next-generation Gemini 3 AI systems, prompting strong positive sentiment from investors who anticipate Broadcom's technology will form the foundation of upcoming AI advancements.

This development propelled the stock to approach $395.50 during Wednesday's trading session, establishing new intraday peaks. Broadcom has significantly outperformed the broader semiconductor index, positioning itself as a clear beneficiary of the expanding AI infrastructure market.

Should investors sell immediately? Or is it worth buying Broadcom?

Analyst Confidence Remains Strong

Despite the substantial recent appreciation, research firms maintain positive outlooks. Trefis has established a $503 price target, highlighting Broadcom's unusual combination of stable cash flows—partially derived from the VMware segment—alongside explosive growth potential in artificial intelligence.

Institutional investors appear equally confident. Blue Whale Capital LLP maintains Broadcom as its third-largest holding valued at over $164 million. Recent acquisitions by political figures have provided additional signals of confidence in the company's prospects.

Technical Position and Market Dynamics

From a technical perspective, the stock maintains a definite upward trajectory, trading well above its moving averages. However, significant daily fluctuations exceeding $20 indicate ongoing tension between profit-taking activity and new buying interest.

The critical question remains whether shares can stabilize above the $380 level. While the Google partnership and institutional support provide fundamental strength, the elevated valuation means December's quarterly results must meet or exceed expectations to justify current price levels.