Catalyst Alert: Alphabet Just Made Broadcom's Stock a Must-Buy

Sometimes, news comes along that fundamentally changes how investors should view a stock moving forward. However, this news may not always be obvious. That was certainly the case when Broadcom (NASDAQ: AVGO) revealed in a filing that it extended its agreement with Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) to develop and supply future generations of Alphabet's Tensor Processing Units (TPUs). On the surface, this may not seem like a big deal, as Alphabet and Broadcom have partnered on TPUs for more than a decade. However, the agreement just removed one of the biggest bearish arguments against Broadcom's stock. Broadcom and Alphabet have long been tied at the hip with TPUs, and it's become one of the biggest growth drivers for both companies. While there seemed to be little reason to mess with this mutually beneficial partnership, there was growing concern that Alphabet would eventually look to ditch Broadcom.Image source: The Motley Fool.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool