Broadcom Stock Surges on $650 Billion AI Spending as Morgan Stanley Backs Meta’s AI Growth
META•Broadcom’s stock climbed to an intraday all-time high ahead of Q2 results, with analysts projecting $2.39 adjusted EPS and $22.13 billion revenue as hyperscaler AI spending tops $650 billion, including Meta among key customers. Morgan Stanley forecasts Meta can lead AI innovation but warns execution must meet lofty growth expectations.
1. Broadcom Stock Hits Record Highs on AI Demand
Broadcom shares reached an intraday all-time high on June 3 ahead of its fiscal Q2 earnings release. Wall Street expects $2.39 adjusted EPS and $22.13 billion in revenue, driven by an estimated $650 billion hyperscaler AI build-out that counts Meta among major customers.
2. Meta Among Hyperscaler Customers Driving Chipmaker Growth
Broadcom’s customer base includes Google, Meta, Anthropic and OpenAI, reflecting broad demand for custom AI chips. The company has surpassed its own guidance for seven consecutive quarters and its order backlog offers visibility into continued supply for Meta’s data centers.
3. Morgan Stanley Sees Meta as AI Market Leader with Caveats
Morgan Stanley analysts upgraded Meta’s AI outlook, citing its robust roadmap, social network integration and Reality Labs opportunities. The bank cautioned that Meta must deliver consistent execution and revenue milestones to justify its elevated valuation and growth prospects.
