Broadcom Inc. ( AVGO ) rose nearly 5% in premarket trading on Thursday.

What Happened: This uptick comes on the heels of an announcement by Meta Platforms Inc. ( META ) regarding its plans to ramp up the use of chips designed in collaboration with Broadcom ( AVGO ).

During an investor conference call, Meta’s CFO, Susan Li, unveiled the company’s strategy to increase the deployment of its custom Meta Training and Inference Accelerator (MTIA) chips. These chips are a product of Meta’s collaboration with Broadcom ( AVGO ).

Li elaborated on the company’s strategy, saying, “We’re pursuing cost efficiencies by deploying our custom MTIA silicon in areas where we can achieve a lower cost of compute by optimizing the chip to our unique workloads.”

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She also mentioned that the company initiated the deployment of MTIA to its ranking and recommendation inference workloads for ads and organic content in 2024.

Meta aims to fast-track MTIA adoption for these specific use cases in 2025. Additionally, the company plans to expand its custom silicon initiatives to support training workloads for ranking and recommendations in the following year.

Mark Zuckerberg-led company gained 1.40% during the premarket session.

Broadcom ( AVGO ) is set to release its first-quarter results in March. In the premarket session, the stock is trading at $215.76, up 4.56%. Over the past six months, it has surged more than 43.78%, driven by AI optimism.

Morgan Stanley, Barclays, and Mizuho tracked by Benzinga, released their latest ratings on Jan. 28, 17, and 10, 2025, respectively, with an average price target of $255.33, implying an 18.38% upside for Broadcom ( AVGO ).

Former House Speaker Nancy Pelosi (D-Calif.), a frequent investor in the stock market during her time in Congress, revealed in June that she had purchased call options on Broadcom ( AVGO ). Following the company’s 10-for-1 stock split, the options now have a strike price of $80 and are set to expire in June 2025.

Pelosi, a closely watched Congressional trader, has garnered attention for her stock investments, sparking the creation of dedicated Pelosi portfolio trackers.

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