Broadcom Gains in Custom AI Chips Amid Major Cloud Deals

Broadcom (AVGO) is the IBD Stock Of The Day, gaining momentum as it expands its custom AI chip business in collaboration with Google, which is co-developing its seventh-generation TPU, Ironwood. The stock is in a cup-with-handle pattern with a buy point of 363.24 and has recently broken a downtrend, reflecting positive investor sentiment amid increased data-center spending and AI chip demand. The deal with Anthropic and potential moves by Microsoft to adopt Google TPUs further bolster Broadcom's prospects in the AI and data-center markets.