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Further Reading from MarketBeat Media
Broadcom & Meta Extend AI Pact Into 2029 as Shares Climb to $400Reported by Leo Miller. Originally Published: 4/21/2026. 
Key Points
- Broadcom is back up from its lows, expanding several key AI partnerships along the way
- Broadcom received its latest AI expansion from Meta Platforms, with the companies set to collaborate on custom chips through 2029
- As Broadcom hits $400 again, its forward P/E ratio is down substantially, a positive sign going forward
- Special Report: Have $500? Invest in Elon’s AI Masterplan
After falling more than 25% to below $300, semiconductor giant Broadcom (NASDAQ: AVGO) has staged a sizable recovery. Now trading near $400, the stock is up more than 10% in 2026 and has rebounded over 30% from its 2026 lows. In early April, Broadcom expanded its artificial intelligence (AI) chip partnerships with Google parent Alphabet (NASDAQ: GOOGL) and Anthropic, jolting the stock. About a week later, Broadcom announced an expanded partnership with another major customer: Meta Platforms (NASDAQ: META).
Importantly, as Broadcom returned to the $400 area, the stock’s forward price-to-earnings (P/E) ratio fell considerably on the back of higher forward earnings expectations. That lower multiple reduces the risk of a repeat of the late‑2025 to early‑2026 drawdown. Meta and Broadcom Work on 2nm AI Chips, Extend Partnership Through 2029With their latest announcement, Broadcom and Meta confirmed their long‑standing relationship will continue for years. The firms will collaborate on future generations of Meta’s custom AI chips over the next three years, extending their partnership through 2029 and providing greater visibility for Broadcom’s revenue stream. Broadcom and Meta say they will roll out the world’s first two‑nanometer (2nm) AI accelerator — a notable technological milestone. Lower nanometer processes are often shorthand for more advanced chip technology, signaling that Meta and Broadcom are working on the cutting edge of AI hardware. That said, nanometers are only one factor that determines a chip’s overall performance and the strength of its supporting system. In connection with the deal, Broadcom CEO Hock Tan will not run for re-election to Meta’s Board of Directors. Price Targets Hold Steady Amid Meta AnnouncementThe companies say their initial commitment exceeds one gigawatt (GW) and is the first phase of a multi‑GW rollout, consistent with statements Broadcom made on its last earnings call. Analysts use GWs to describe the scale of data center deployments; a multi‑GW partnership with Meta has meaningful financial implications for Broadcom. Bernstein analyst Stacy Rasgon estimates Broadcom generates roughly $20 billion in revenue per GW. The partnership extends beyond custom AI processors into networking components, such as Ethernet switches that steer data and enable communication between processing chips. While Broadcom’s XPUs often draw most of the attention, networking represents a large portion of its AI business. For the next quarter, Broadcom expects total AI revenue to rise 76% year over year to $14.8 billion, with roughly 40%—about $5.92 billion—coming from networking. On the day of the Meta announcement, Broadcom shares rose roughly 4.2%. MarketBeat has not tracked any Wall Street analysts updating their price targets since, likely because much of the news was already priced in. Still, the confirmation that the partnership runs through 2029 is a positive development for Broadcom. Despite relatively few recent upgrades, Wall Street remains broadly bullish on Broadcom. The MarketBeat consensus price target sits near $435, implying just under 10% upside. Price targets revised after Broadcom’s most recent earnings are more optimistic, averaging about $489—suggesting potential upside north of 20%—and range from $450 to $545. Financials and Outlook Catch Up: Broadcom’s Forward P/E Tanks Despite Return to $400Investors will recall the last time shares traded near $400: early December 2025, when Broadcom hit an all‑time closing high of $411. From that peak the stock fell roughly 29% through late March 2026, so it’s natural for some investors to be cautious as shares approach those levels again. One key difference today is valuation. In December 2025, the stock’s forward P/E traded around 47x–49x; today AVGO’s forward P/E sits near 30x. That decline reflects improved financials and a stronger near‑term outlook, meaning the stock is trading at a similar price but against higher expected earnings. Put simply, Broadcom’s current price is better supported by fundamentals than it was in December, making a repeat of the dramatic post‑December selloff less likely. The stock’s ~30x forward P/E is only slightly above its three‑year average of 29x. |
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