Broadcom (AVGO) Rallies 11.1% as Google's Gemini 3 AI Spur TPU Demand Surge

Broadcom (NASDAQ: AVGO) surged 11.0994% in pre-market trading on Nov. 25, 2025, as optimism over Alphabet’s AI advancements fueled demand for its semiconductor products. The rally followed the launch of Gemini 3, Google’s latest AI model, which has drawn widespread acclaim for its advanced reasoning capabilities and efficiency.

The stock’s rise was directly tied to Broadcom’s role in supplying custom tensor processing units (TPUs) for Alphabet’s AI infrastructure. Analysts highlighted that Gemini 3’s success could drive sustained demand for TPUs, which are critical for training and inference tasks. Google’s use of TPUs in its cloud services further amplifies Broadcom’s exposure to AI-driven growth, with analysts noting the company’s strategic position in a high-margin, high-demand sector.

Investor sentiment was bolstered by industry figures, including Salesforce CEO Marc Benioff, who praised Gemini 3’s superiority over competing models like ChatGPT. This validation of Google’s AI progress underscored the long-term potential for Broadcom’s semiconductor business, particularly as AI adoption accelerates across cloud computing and enterprise applications.

While some analysts cautioned about customer concentration risks and competitive pressures, the immediate outlook for Broadcom remains strong. The company’s deep integration with Google’s AI ecosystem and its leadership in AI networking infrastructure position it to benefit from sustained hyperscaler demand.

Backtest Hypothesis: A hypothetical strategy leveraging Broadcom’s AI-driven revenue streams and VMware’s recurring software income could model long-term growth. Historical data suggests that maintaining a 60x+ earnings multiple on sustained AI earnings expansion—combined with VMware’s stable cash flow—could justify a price target exceeding $700 by 2028, assuming continued execution on key partnerships and market share retention.