Two stories were moving markets on Tuesday -- Google parent Alphabet unveiled a plan to issue $80 billion of equity, and Nvidia CEO Jensen Huang said Marvell Technology could top a $1 trillion valuation.
Both events were giving Broadcom stock a boost.
Shares in the chip maker rose 5.8% to $486.70 ahead of the opening bell. Futures tracking the S&P 500 were 0.2% lower.
Alphabet's plan to raise tens of billions of dollars to help pay for its AI infrastructure drew a mixed response from the market, but bodes well for Broadcom.
The search engine and cloud computing company is expected to spend the money raised on building data centers that feature its own custom chips, which Broadcom helps design.
Huang's endorsement of Marvell may also be lifting Broadcom shares. The CEO's $1 trillion target implies Marvell stock could surge about 400% from its current level. Broadcom offers similar products to Marvell.
Broadcom stock was up 79% over the past year through Monday's close, surging as the AI boom drives up demand for chips.
The rally has made the company the world's seventh largest by total market capitalization, with a valuation of more than $2 trillion.
