Shares of Broadcom Inc. (AVGO) surged more than 4% in pre-market trade on Thursday after Meta Platforms Inc. (META) revealed that it is ramping up the use of its custom-designed chips. During its fourth-quarter earnings call,

Broadcom stock was getting a much-needed boost early Thursday. The company looks set to benefit from greater use of its chip designs by Meta Platforms.Meta CEO Mark Zuckerberg pledged “hundreds of billions of dollars” of long-term investment in artificial-intelligence technology alongside the social-media company’s earnings report after the close of trading on Wednesday.

Microsoft alone is projecting $80 billion of infrastructure spend for data centers in 2025; meanwhile, OpenAI, Oracle and SoftBank are leading the newly announced Stargate initiative under President Trump — a project aiming to invest $500 billion into AI frameworks over the coming years.

Broadcom shares were trading about 4% higher in premarket trade. Meta CFO Susan Li told investors on a conference call that the company will use more of the chips it's designed with Broadcom. The chips are known as Meta's Training and Inference Accelerator,

Broadcom is well-positioned to benefit from DeepSeek’s advancements in AI. See why AVGO stock could outperform as big tech focuses on efficient custom chips.

Broadcom rose 5% on Thursday as Meta Platforms announced plans to increase use of chips designed with Broadcom.

Artificial intelligence stocks were moving higher today as earnings season kicked into full swing and as investors continue to digest the impact of DeepSeek on the AI sector. The

Meta is slated to report fourth-quarter earnings on Wednesday after the close of regular trading. Meta shares are up over 11% since Oct. 30, when it reported third-quarter earnings and said it would raise the low end of its 2024 capital expenditures guidance from $37 billion to $38 billion.

Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.

Wall Street's main indexes rose on Thursday, driven by post-earnings advances in Meta and Tesla, although Microsoft's weak cloud forecast and downbeat results from Cigna dampened investor enthusiasm. Microsoft MSFT.O dropped 4.7% after forecasting disappointing growth in its cloud computing business.

China's DeepSeek took the world by storm this week by introducing an AI model that runs efficiently on older NVIDIA GPUs, using only a tiny fraction of the budget OpenAI, Meta, Tesla, Microsoft, and others have spent building their AI infrastructure. It has raised serious questions about future spending for AI build-outs.

While Meta surges on AI success despite DeepSeek concerns, Microsoft stumbles on cloud growth. How are these tech giants betting billions on AI's future?