Google’s AI Dominance Supercharges This Semiconductor Stock - Here’s Why It Matters for Crypto

Silicon Valley's AI arms race just found its unlikely winner - and it's not who you'd expect.

The Chip That Powers Tomorrow

Google's relentless AI expansion is sending shockwaves through semiconductor markets. One particular stock is riding the wave, positioning itself as the backbone of next-generation computing. While Big Tech battles for AI supremacy, this manufacturer quietly supplies the hardware making it all possible.

Crypto Connections Run Deep

Here's where it gets interesting for digital asset enthusiasts. The same processing power driving AI breakthroughs also fuels blockchain networks and mining operations. As demand for computational resources explodes, the lines between AI infrastructure and crypto infrastructure blur into irrelevance.

Market Momentum Meets Reality

Sure, Wall Street analysts are falling over themselves to upgrade price targets - because nothing says 'sound investment' like chasing yesterday's news at tomorrow's prices. But beneath the hype lies a genuine technological shift that could reshape how we think about computational value in both traditional and decentralized systems.

The real question isn't whether AI will transform finance - it's whether crypto will be ready to harness that transformation or get left watching from the sidelines.

Key Takeaways

• Nvidia rival Broadcom, which counts Google as a major customer, has seen its stock surge recently along with Alphabet's. 
• With its recent gains, the custom AI chipmaker's stock is one of the top performers in the S&P 500 this year, outpacing Nvidia's rise.

Alphabet's stock has been on a roll lately. One big beneficiary of that move? Broadcom.

The rise in shares of Alphabet, Google's parent company, has helped inject some energy back into a flagging AI trade. That's had knock-on effects on a range of tech stocks—though few have benefitted as much as Broadcom (AVGO), which counts Google as a major customer for its AI chips.

Broadcom's shares have surged recently, climbing along with Alphabet's (GOOGL, GOOG), which have been lifted by a series of positive developments for the cloud giant from a vote of confidence from Warren Buffett's Berkshire Hathaway to an upbeat reception for its latest AI model and signs of a new deal involving its chips.

Why This Is Significant

Alphabet and Broadcom are seeing their shares advance at a time when some AI favorites like Nvidia are flagging. That could point to some shifts to watch in the AI trade's biggest gainers—and the competitive landscape for chips.

Alphabet shares advanced around 2% to finish at a fresh high Tuesday, and have added about 17% since Berkshire's stake was revealed in a regulatory filing a little over a week ago.

Broadcom's stock, meanwhile, has climbed about 12% over the same period. The shares ticked about 2% higher Tuesday to NEAR their all-time high, while Nvidia (NVDA), Advanced Micro Devices (AMD), and other chipmakers lost ground.

With its recent gains, Broadcom's stock is up close to 70% for the year, making it one of the top performers in the S&P 500 this year so far. It's outpaced Nvidia's roughly 33% climb in 2025, along with the rest of the Magnificent 7.

Bernstein analysts said in a note Tuesday Broadcom "would be a clear winner" of a reported chip deal in the works between Meta (META) and Google, as both Google's custom chip partner of choice and a supplier for Meta.

Related Education

"And while the stock is growing more expensive perhaps it is justified as we continue to believe that Street estimates look far too low," the analysts said. Bernstein maintained an "outperform" rating and $400 target for the shares. All 12 of the analysts with current ratings surveyed by Visible Alpha consider the stock a buy, though it's surpassed their mean target around $378.

There's still some Optimism in Bernstein's outlook for Nvidia, though. Its analysts reiterated a bullish rating and $275 target for the shares, saying that booming demand for AI hardware is likely to benefit both it and Broadcom.

Broadcom "has the narrative at the moment, but [Nvidia's] valuation is looking increasingly attractive and the sell-offs seem overdone to us," they said. "We WOULD be buyers (and continue to like both stocks)."