Google's Gemini 3 Sends Broadcom Soaring: TPUs Take Center Stage

Key Points

• Broadcom shares got a significant lift after the release of Google's Gemini 3 large language model.
• Gemini 3 is rivaling the best-performing AI models. Broadcom played a huge role in its creation.
• AVGO is riding the coattails of the hottest Magnificent Seven stock. Shares are just south of their all-time high.

Once again, semiconductor giant Broadcom NASDAQ: AVGO is getting a boost from its longtime friend and Google parent company Alphabet NASDAQ: GOOGL. Investors have been increasingly connecting the dots between these two firms. This is because Google has developed its tensor processing chips (TPUs) with Broadcom for years.

Google’s recent deal with Anthropic signals more TPU revenue for Broadcom. Analysts at Jefferies also named Broadcom as their top semiconductor pick over NVIDIA NASDAQ: NVDA, citing the potential for increased TPU demand.

Broadcom’s more than 4% surge on Nov. 19 is tied to its TPU technology and to Google’s release of its Gemini 3 artificial intelligence (AI) model, which is expected to benefit Broadcom going forward.

Gemini 3: A Clear Validation of AVGO’s Semiconductor Prowess

On Nov. 18, Google released its latest family of large language models (LLMs): Gemini 3. Google calls the Gemini 3 family its most intelligent models yet. Key third-party sources seem to agree. Gemini 3 Pro, the flagship model version, is performing extremely well on LMArena, one of the go-to sources for comparing LLM performance.

As of Nov. 25, the site rates Gemini 3 Pro as the best LLM. It also holds the top ranking on the Artificial Analysis Intelligence Index, with a score of 73. Overall, data coming from these authorities strongly indicate that Gemini 3 Pro may be the best LLM currently available.

This is a significant win for Broadcom, considering that Google built Gemini 3 using TPUs. In fact, according to Bloomberg Intelligence analyst Mandeep Singh, Google trained Gemini 3 solely on TPUs. Google did not use any of NVIDIA’s graphics processing units (GPUs) in this process. This is a critical shift from the status quo, as other LLM developers rely heavily on NVIDIA GPUs to train their models.

With Gemini 3 showing it is a top dog in LLM performance, Broadcom is, by extension, showing that its chips can compete very effectively with NVIDIA’s. This clearly strengthens Broadcom’s competitive positioning. It allows the firm to potentially capture a larger share of AI spending going forward.

Gemini 3’s strong performance also means that Google’s partnership with Broadcom should keep expanding. This comes as it will likely continue to use TPUs to build future models.

Broadcom Shares Close in on All-Time-Highs

Broadcom’s connection with Google has helped the stock greatly in November. On Oct. 29, shares hit their all-time high closing price of around $386. After dipping significantly, the stock is nearly back to that level, closing at $385 on Nov. 25. The iShares Semiconductor ETF NASDAQ: SOXX and NVIDIA also peaked on Oct. 29. Since then, they are down 8% and 14%, respectively.

Google is up 21% over that time, and the stock has become the market’s favorite Magnificent Seven name over recent months. Overall, Google shares have provided a total return of approximately 70% in 2025. This comes even though shares were essentially flat through mid-July. Google’s 2025 return is now by far the best among the Mag 7, with NVIDIA a distant second at around 32%. Notably, Broadcom shares have now delivered a total return of nearly 67%.

Recent Price Targets Show Optimism as AVGO Earnings Approach

Looking ahead, Wall Street analysts are continuing to show confidence in Broadcom. The MarketBeat consensus price target of $374 indicates around 3% downside in shares. However, MarketBeat has tracked many analysts who have issued price targets since the beginning of October. Among them, the average target sits at $423, suggesting 10% upside potential. This average includes Raymond James Financial’s $420 price target. The company set this forecast on Nov. 20, two days after the release of Gemini 3.

Broadcom will report earnings on Dec. 11 after the market close. Upcoming MarketBeat coverage will provide details on what to watch for going into the release. It is also worth paying attention to the results of Marvell Technology NASDAQ: MRVL, which reports after the market close on Dec. 2. Marvell is one of Broadcom’s key competitors in custom AI chip design.