Broadcom (AVGO, Financial) jumped 4.3% on Wednesday and ticked up another 1.38% pre-market at 7:44 a.m. ET, trading at $235.21, as investors reacted to Alphabet's (GOOG, Financial) (GOOGL, Financial) aggressive AI infrastructure spending plans.
Alphabet announced a $75 billion investment in AI expansion for 2025, joining other tech giants like Meta Platforms (META, Financial), which plans to spend $60 billion to $65 billion, and Microsoft (MSFT), which is budgeting $80 billion for AI.
The announcement helped chipmakers stay in the green on Wednesday, with Nvidia (NVDA, Financial), TSMC (TSM, Financial), and Micron (MU, Financial) all closing higher. The AI chip market had faced concerns over efficiency improvements reducing demand for computing power, particularly after the emergence of Chinese AI startup DeepSeek. However, these aggressive capital expenditure plans signal continued strong demand for high-performance computing and AI-related semiconductors.
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