Broadcom shares climbed more than 5% in premarket trading on February 5, 2026. This rally followed an announcement from Alphabet (Google) detailing a massive expansion of its artificial intelligence infrastructure.
Google plans to nearly double its capital expenditures during 2026. The company will dedicate a significant portion of this investment to building out AI data centers.
Broadcom serves as a critical partner in manufacturing Google's custom tensor processing unit (TPU) chips. These specialized processors are essential for powering Google's advanced AI models.
The market reaction reflects investor confidence in Broadcom’s role within the expanding AI semiconductor sector.