Broadcom’s AI Chip Empire Tightens as Golden Cross Signals More Upside

The stars are aligning for Broadcom. The chipmaker has locked in a trio of marquee AI clients within a single trading week, its stock is flirting with a 52-week high, and a classic technical signal has just flashed bullish. Yet beneath the surface, the picture is more nuanced — with profit-takers circling and insider sales piling up.

A Trifecta of AI Deals

Broadcom’s dealmaking machine has been working overtime. Meta Platforms signed a fresh three-year pact to co-develop custom AI chips, with hardware capacity commitments reaching one gigawatt by 2029. Meta’s infrastructure spending plans for 2026 alone range between $115 billion and $135 billion, making Broadcom a key supplier alongside Nvidia and AMD. Notably, CEO Hock Tan is stepping down from Meta’s board as part of the reshuffle, though he will stay on as an advisor.

Even bigger numbers come from Anthropic. The AI startup has placed TPU orders worth $21 billion with Broadcom for fiscal 2026, with an additional 3.5 gigawatts of chip capacity slated from 2027 onward. The financial muscle behind this demand? Alphabet. Google has poured up to $40 billion into Anthropic, including $10 billion in immediate cash. Anthropic, which hit an annualized revenue run rate of $30 billion in April 2026, runs its large language models primarily on Broadcom’s TPUs.

Google itself is deepening its reliance on Broadcom. At the Google Cloud Next 2026 conference in Las Vegas, Alphabet unveiled the new TPU-8 series, with a training variant delivering 2.7 times the performance per dollar versus its predecessor. Broadcom, as the primary designer of these chips, is a direct beneficiary of Alphabet’s $175 billion to $185 billion capital expenditure budget for 2026.

Technicals Paint a Bullish — But Cautious — Picture

Broadcom shares have surged roughly 29% over the past 30 days, closing Friday at €356.80, just a hair below the 52-week high of €360.45. The stock has more than doubled over the past twelve months.

In April, the shares generated a Golden Cross — the 50-day moving average crossing above the 200-day moving average — a pattern chartists traditionally interpret as a sign of sustained trend strength. The stock currently trades about 22% above its 50-day average of €292, underscoring the intensity of the rally.

But the Relative Strength Index is flashing amber. At 67.8, the RSI is approaching overbought territory. The immediate resistance zone sits around the current 52-week high, while buyers have stepped in near $370 on the U.S.-listed shares during pullbacks.

Should investors sell immediately? Or is it worth buying Broadcom?

Institutional Divergence and Insider Selling

Among big holders, strategies are splitting. Oak Harvest Investment Services boosted its position by roughly 20% to about 71,600 shares, making Broadcom its seventh-largest portfolio holding. On the flip side, Moran Wealth Management trimmed its stake by about 10%, though the chipmaker remains its single largest position. Lecap Asset Management sold off nearly a fifth of its holdings in the most recent reporting period.

Insider activity has been decisively bearish. Over the past 90 days, company insiders have sold shares worth approximately $106 million, including significant transactions by Mark David Brazeal and Charlie Kawwas.

Upcoming Catalysts and Valuation

The next major event on the calendar is the VMware Explore 2026 conference in Las Vegas this August, with registration opening April 28. For Broadcom, this is more than a trade show — it’s the prime stage to showcase the integration of VMware Cloud Foundation and its private cloud infrastructure strategy, a segment investors have watched closely since the acquisition.

Wall Street remains constructive. The analyst consensus is “Moderate Buy” with an average price target of $435. Morgan Stanley sees the stock at $470, while JPMorgan has a $500 target. The price-to-earnings ratio of roughly 83 sits well above the semiconductor industry average, but bulls argue it’s justified by AI chip revenue that is expected to hit $10.7 billion in the second quarter of fiscal 2026. The Q2 report is due in early June.

Competition is not standing still. Reports indicate Google is also in talks with Marvell Technology about future AI chips, with Marvell targeting a 20% share of the data center market by 2028.

For now, Broadcom’s market capitalization sits at roughly $2 trillion. The coming days bring earnings from Microsoft and Meta on April 29, followed by Apple on April 30. Their commentary on capital spending will offer the next clue on whether Broadcom’s order boom has staying power — or whether the first signs of a slowdown are emerging.