AVGO positive sentiment on Google and Anthropic deals

What happened: Alphabet Inc. (GOOGL) and Anthropic, a cutting-edge AI startup, struck a deal, boosting sentiment around Alphabet's AI capabilities. Concurrently, Broadcom Inc. (AVGO) announced extended partnerships with both Alphabet and Meta Platforms Inc. (META), securing significant deals in the AI chip market. These developments occurred between April 7 and April 13, 2023.

Market impact: The AI chip sector, particularly Broadcom, saw a boost in sentiment and stock performance. Analysts like Mizuho raised AVGO's price target to $480, reflecting optimism about the company's growth prospects. Meanwhile, Alphabet's AI ambitions gained traction, positioning it as a top AI infrastructure play. The deals also sparked speculation about potential shifts in the AI chip landscape, with some analysts suggesting a challenge to Nvidia Corporation's (NVDA) dominance.

What to watch next: Investors should monitor Alphabet's Q1 2023 earnings, scheduled for April 25, 2023, for further insights into its AI strategy. Additionally, the rollout of Google's Gemini AI chatbot and its integration with personal photos, announced on April 13, 2023, could provide more color on the company's AI advancements. Lastly, Broadcom's Q2 2023 earnings, expected in late May 2023, will offer updates on the company's AI chip business and overall financial health.