tech
February 5, 2026
Jefferies says Alphabet’s spending plans are great for Broadcom. The analyst sees a 60% surge
Jefferies believes that Broadcom has an edge over rival MediaTek in supplying Alphabet’s next two major chip generations.
TL;DR
- Jefferies reiterates a buy rating and $500 price target on Broadcom, implying a 62% potential stock rally.
- Alphabet's projected capital expenditures for 2026, expected to more than double 2025's spend, signal continued AI investment.
- Broadcom is expected to secure the majority of Alphabet's demand for its next two chip generations due to superior performance.
- Concerns about customer-owned tooling are seen as overblown, with upside expected from networking momentum and ASIC opportunities.
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