Broadcom (AVGO +3.46%) stock rose to a new all-time high in Wednesday's daily session. The company's share price gained 3.5% in a day of trading that saw the S&P 500 trade flat and the Nasdaq Composite gain 0.5%.
The connectivity and software solutions specialist got a valuation boost today thanks to news that Nvidia is teaming up with Oracle to build a new supercomputer. Broadcom stock is now up 66.5% across 2025's trading.
Image source: Getty Images.
Broadcom stock rises on big Nvidia news
Nvidia announced today that it is teaming up with Oracle to create a new supercomputer for the U.S. Department of Energy. The supercomputer will be used for research and will make use of 100,000 of Nvidia's Blackwell graphics processing units (GPUs). While no mention of Broadcom was made in the announcement, there's a good chance that the new supercomputer project will be a positive demand catalyst for the company.
Broadcom makes connectivity chips and software that are used in artificial intelligence (AI) data centers. When news of a big contract win or growth driver for Nvidia hits the wire, it's usually a good sign that Broadcom could have related wins coming down the pipeline.
NASDAQ: AVGO
Key Data Points
What's next for Broadcom?
Broadcom has been one of the chip industry's biggest winners amid the rise of AI technologies, and there are good reasons to think that it will continue to see strong sales and earnings tailwinds connected to the trend. The company has a clear leadership position in key connectivity chips that are used to combine the computational powers of GPUs, and its competitive edge in the category suggests that it will continue to score wins in conjunction with data center buildouts.
