Broadcom Just Reached a 3-Year AI Chip Deal with Meta. Does That Make AVGO Stock a Buy?

Investors are buzzing about chipmakers as the AI boom accelerates. Major tech firms now prefer building in-house AI silicon instead of relying on Nvidia’s (NVDA) chips. Broadcom (AVGO) has emerged as a key winner in that custom-chip trend. 

Last year, AVGO stock nearly doubled on surging demand for its AI-focused processors and networking gear. And this momentum has no sign of slowing down. Recently, Broadcom announced an expanded multiyear deal with Meta (META) to co-design AI data center chips. The tie-up covers multiple processor generations through 2029 and kicks off with Meta committing over 1 gigawatt of computing capacity.