Broadcom stock is rising today as AI financing and analyst optimism fuel rebound

Broadcom stock rose more than 1% on Friday even as semiconductor shares broadly weakened, with the Philadelphia Semiconductor Index down about 1%.

The move comes after a difficult week for Broadcom, which fell sharply after Marvell Technology announced an agreement to help Google develop custom artificial intelligence chips.

The deal also gave Alphabet an option to acquire as much as $12,2 billion (approx. R 208,9 billion) of Marvell shares.

The development raised concerns about Broadcom’s position as Google’s main custom-chip partner and prompted investors to reassess the competitive landscape for AI accelerators.

Yet, investors assessed a series of positive signals for the stock on Friday.

The stock is still down 7% this week.

Broadcom reportedly weighs major AI financing

One of the biggest catalysts came from a Bloomberg report that Broadcom is in discussions with lenders to raise more than $60 billion (approx. R 1 trillion) in debt for an AI chip financing arrangement that could benefit Anthropic and other companies.

The financing could include roughly $30 billion (approx. R 513,6 billion) of junior debt, while Broadcom would guarantee part of a senior-secured tranche that could range from $60 billion (approx. R 1 trillion) to $70 billion (approx. R 1,2 trillion), according to the report.

The total financing could potentially reach as much as $100 billion (approx. R 1,7 trillion).

Blackstone and Apollo Global Management are reportedly in discussions to participate in the financing.

The scale of the potential transaction underscores the enormous amount of capital being deployed to build AI infrastructure and could strengthen the investment case for Broadcom as demand for custom AI chips continues to expand.

Analysts remain bullish ahead of earnings

Broadcom has also received a series of positive analyst calls.

BMO initiated coverage of the company with an "outperform" rating and a $455 price target, compared with the stock's current price of about $367.

The firm identified Broadcom as a leading supplier in the XPU and networking markets.

Mizuho also reiterated its Outperform rating and $530 price target ahead of Broadcom’s earnings report on September 2.

The firm said Broadcom has the technological capabilities needed to support Google's TPU deployment plans across multiple generations, pointing to its leadership in ASIC, SerDes and advanced packaging.

TD Cowen similarly maintained its Buy rating and $500 price target, highlighting Broadcom's expectation for more than $100 billion (approx. R 1,7 trillion) in AI semiconductor revenue by fiscal 2027.

However, Bank of America downgraded Broadcom's issuer and bond ratings to Marketweight, citing uncertainty around the XPU platform being developed with Blackstone and Apollo.

Options traders remain confident

Investor positioning also points to continued optimism.

Broadcom's 50-day call-to-put volume ratio across the ISE, CBOE and PHLX stands at 2.14, a level higher than 80% of readings over the past year.

The stock has gained about 27% over the past year and 6.2% in 2026.

It also snapped a four-day losing streak on Thursday, with the $360 level again providing support.

With earnings due on September 2, investors will now be looking for evidence that Broadcom's AI opportunity remains intact despite growing competition in custom chips.