Broadcom stock jumps 64%: Is the historic AI rally over?

Broadcom's 64% surge highlights an AI-driven rally reshaping market leadership. The chipmaker added over $280 billion in market value in four days after a March 30 low. It rebounded from a 23% decline and became the S&P 500's third-largest contributor this year. The AI-driven rally has spurred a broader semiconductor surge, with the Philadelphia Semiconductor Index up 94% in 2026. Q2 revenue is expected to rise more than 47% with net profit up about 67%. The shares trade near 32x forward earnings and target around $480.56. Alphabet accounts for roughly 13% of Broadcom revenue and has an $80 billion equity offering, signaling ongoing cloud investment. The broader demand from Amazon, Meta, Alphabet and Microsoft could total up to $725 billion in capex this year.