Broadcom (AVGO) Rallies 11.10% on $10B AI Chip Order, Strategic Alliances

Broadcom Inc. (AVGO) surged 11.10% in pre-market trading on November 25, 2025, with its stock price climbing to $377.96. The rally follows a series of strategic developments, including a $10 billion AI chip order, a partnership with Google, and the announcement of a multibillion-dollar collaboration with OpenAI to design custom accelerators. Analysts highlight Broadcom’s strong momentum in AI-driven growth, with projected revenue from the sector reaching $19 billion in 2025 and $30 billion in 2026.

The stock’s performance is underpinned by robust demand for its Gen6 PCIe switch and VMware cloud infrastructure adjustments. Institutional confidence remains high, with 76% of shares held by institutions, though insiders have sold more shares than they’ve bought recently. Despite a P/E ratio of 86.79—well above the tech sector average—optimism persists due to Broadcom’s leadership in AI semiconductors and software solutions.

Analysts remain bullish, with a consensus “Buy” rating and a 3.03 average score. Smart Scores from third-party platforms indicate strong growth and momentum, though valuation metrics like the P/B ratio of 23.56 suggest potential overvaluation. Competitors like Nvidia cast a shadow, but Broadcom’s strategic AI alliances and product innovation continue to attract investor attention.

A hypothetical backtest strategy could involve a buy recommendation based on the AI-driven rally, with a stop-loss at $330 and a target near $400. This aligns with the company’s projected earnings growth of 18.59% and sustained demand in cloud and connectivity markets.