Broadcom hit an all-time high on April 22 and became one of just seven companies in the world worth at least $2 trillion. The move came as avgo stock benefited from a broader market rally and fresh Alphabet-related news that reinforced how deeply the chipmaker is tied to the artificial-intelligence boom.
The company’s custom AI chips and AI networking business are booming, and that strength helped push Broadcom into the same valuation tier as Nvidia, Alphabet, Apple, Microsoft, Amazon and Taiwan Semiconductor Manufacturing. Google said on April 22 that its new TPU 8t chip is designed for AI training and the TPU 8i is built for AI inference, while also noting that it co-designs its TPUs with Broadcom. Broadcom also expanded its partnership with Alphabet's Google Cloud for network observability enabled by Broadcom's AppNeta.
The stock’s rise landed a day after five low-cost Vanguard exchange-traded funds underwent stock splits on April 21, putting Broadcom back in view for investors who own it through index funds. Broadcom was a top 10 holding in four of those five funds, including the Vanguard S&P 500 Growth ETF, the Vanguard Mega Cap Growth ETF and the Vanguard Information Technology ETF. It is also the largest holding in the Vanguard High Dividend Yield ETF, where it makes up 6.3% of the fund.
There was one notable exception: Broadcom is excluded from the Vanguard Mid-Cap ETF, even as that fund underwent a 4-for-1 stock split. The contrast underscores how the company now sits at the center of both growth and income portfolios, with 15 consecutive years of dividend increases and steady free cash flow supporting buybacks and payouts. The Vanguard Tech ETF has been the best-performing Vanguard ETF over the last decade, and the Vanguard Mega Cap Growth ETF ranks as Vanguard’s second-best performer over the same stretch, a reminder of where investors have been rewarded as megacap technology keeps carrying the market.
For now, Broadcom’s climb says as much about the market’s appetite for AI infrastructure as it does about one company. The next test is whether the chipmaker can keep turning its AI momentum, cloud partnerships and dividend discipline into gains that last beyond a single rally.