Nvidia And Broadcom Stocks Jump After-Hours, Thanks To Google’s Capex Boost
Synopsis
Shares of Broadcom, which manufactures Google’s Tensor Processing Units (TPUs), rallied over 6% in Wednesday’s after-hours session.
- Nvidia’s stock gained 2%.
- Alphabet said it would double capital spending this year to about $180 billion, most of which would go through AI development and related infrastructure.
- Broadcom shares trended on Stocktwits, with retail sentiment shifting to ‘bullish’ from ‘neutral.’
Alphabet’s massive capital spending boosted shares of its chip partners Broadcom and Nvidia in after-hours trading on Wednesday.
Broadcom stock rose by over 6%, and Nvidia shares gained 2% after Alphabet said it would double capital spending this year to about $180 billion. The same plan, however, weighed GOOGL stock, which declined 0.5% post-market.
If the gains hold on Friday, it would be AVGO’s best day in over two months. The stock has ended for three straight sessions, cumulatively losing about 7.4% as of the last close.
Broadcom provides networking chips and components for Google’s data centers, and also helps produce the company's custom AI accelerators (TPUs). Google has been scaling its TPUs, which power much of its AI development, including workloads related to its latest Gemini 3 AI model.
Broadcom shares got a lift late last year as well, after Google debuted Gemini 3 to wide praise from the industry.
Even as Google ramps up its use of its in-house TPUs, it remains a key customer of Nvidia. Google Cloud uses Nvidia GPUs for AI training and inference for clients, and Nvidia chips underpin parts of Google’s own data-center infrastructure.
On Stocktwits, retail sentiment for AVGO shifted to ‘bullish’ from ‘neutral,’ amid ‘high’ message volume. Several members said they anticipate a strong rally in shares, although skepticism remained after the stock’s recent underperformance.
“Even after rallying in AH (after-hours), most shareholders in AVGO from last ER's pop are still underwater,” said a user. Despite a sharp slide after the company’s last earnings on Dec. 11, Broadcom shares have gained 44% over the past year.
Stocktwits sentiment for Nvidia remained ‘neutral,’ with bearing from news related to its China business.
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