Broadcom and these stocks are surging as plays on Alphabet's rapid rise

MW Broadcom and these stocks are surging as plays on Alphabet's rapid rise

By Britney Nguyen

The Google parent's stock is on a run - and that's lifting shares of major suppliers including Broadcom, Celestica and Lumentum

Broadcom's stock was up 10% on Monday.

As Alphabet Inc. closes in on a $4 trillion market capitalization, shares of its suppliers are coming along for the ride.

Earlier this year, Alphabet $(GOOG)$ $(GOOGL)$ was seen as an artificial-intelligence loser, but its fortunes have rapidly shifted thanks to some upbeat AI developments - including a positive reception for Google's new Gemini 3 AI model, which the company said outperformed OpenAI's ChatGPT 5.1 and Claude's Sonnet 4.5 in certain tasks.

And if Alphabet is set up to win in AI, investors are looking for ways to profit off its rise. For now, that's meant investors have unloaded some of their Nvidia Corp. (NVDA) and Meta Platforms Inc. (META) positions to seek out opportunity in shares of the Google parent company, Mizuho desk-based analyst Jordan Klein said. He sees that continuing until the stock "gets overbought," and wrote Monday that investors should keep an eye on the company's primary suppliers, including Broadcom Inc. $(AVGO)$, Celestica Inc. $(CLS)$ and Lumentum Holdings Inc. (LITE)

Shares of Broadcom - which works with Google on its in-house tensor processing units, or TPUs - were up more than 10% on Monday to pace the S&P 500's SPX gainers.

Since the end of October, Broadcom has been ahead of Meta in market capitalization, according to Dow Jones Market Data, with a recent gap of $217.6 billion between the two. Broadcom's charge up the ranks of the largest U.S. companies underscores how it's increasingly seen as a winner of a more divergent AI trade.

Celestica offers design, manufacturing and supply-chain solutions to a variety of tech companies, including Alphabet, and its stock is up nearly 13% in Monday trading.

"Demand is rising for Celestica's 800G switches from its top three hyperscaler customers," CIBC analyst Todd Coupland wrote after the company's earnings report in late October.

Shares of Lumentum, on the other hand, were rising nearly 15% on Monday. Klein said the stock's momentum reflects eagerness among investors to buy the dip in optical-component manufacturers.

"We see key [hyperscalers] moving to optical to drive bandwidth," Mizuho research analyst Vijay Rakesh wrote in a note last week, highlighting that Alphabet was a key Lumentum customer.

See more: Google wins high praise for its chip efforts - and that can help Broadcom's stock too

Google's TPUs have been lauded by some analysts as the closest competitor to Nvidia's graphics processing units. Earlier this month, Google announced its seventh-generation TPU, Ironwood, which it called its "most powerful and energy-efficient" version yet. The chips are built for demanding AI workloads, including high-volume AI inferencing, according to Google.

Earlier this month, Jefferies analyst Blayne Curtis said that while he sees "upside across the entire AI universe" as the buildout of infrastructure continues, Broadcom "has a greater magnitude of estimate upside" due to its custom chip work with Google, Meta and OpenAI.

Don't miss: Nvidia's stock is no longer this analyst's top pick in chips. Why Broadcom is his new favored play.

Tech players are ramping up their own hardware, such as application-specific integrated circuits (ASICs) designed by Broadcom for specific AI tasks. Curtis said that's driven ASICs to an "inflection point."

Alphabet's stock was up nearly 6% during midday trading Monday, putting it within 5% of a $4 trillion market capitalization, according to Dow Jones Market Data. The Google parent has added $1.5 trillion to its market cap so far this year, which is a record annual gain for the company, the data showed. Shares of Alphabet are up 67% over the course of 2025.

Read: Google may be sitting on a $900 billion gem that could disrupt Nvidia's dominance

-Britney Nguyen

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November 24, 2025 14:12 ET (19:12 GMT)

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