Investopedia·2025-11-26 11:00Core Insights - Broadcom's shares have surged nearly 70% this year, significantly outperforming the Magnificent 7 members' gains for 2025 [1][5] - The rise in Alphabet's stock has positively impacted Broadcom, as Alphabet is a major customer for Broadcom's AI chips [2][3] Company Performance - Alphabet's stock has increased approximately 17% since Berkshire Hathaway disclosed its stake in the company, reaching a new high [4] - Broadcom's stock has climbed about 12% in the same timeframe, nearing its all-time high [5] - Broadcom is currently one of the top performers in the S&P 500, surpassing Nvidia's 33% increase in 2025 [5][7] Market Dynamics - The positive developments for Alphabet, including a vote of confidence from Berkshire Hathaway and a favorable reception for its latest AI model, have contributed to the stock's rise [3][4] - Bernstein analysts suggest that Broadcom could benefit from a potential chip deal between Meta and Google, reinforcing its position as a key supplier [6][8] Analyst Outlook - Bernstein maintains an "outperform" rating for Broadcom with a target price of $400, indicating confidence in the stock despite its rising valuation [8] - Analysts believe that the current market dynamics favor Broadcom, while also expressing optimism for Nvidia's future performance due to ongoing demand for AI hardware [9]