Broadcom's stock is rising. Here's why its new Google and Anthropic deals are so significant.

Broadcom is showing its might in the world of artificial-intelligence chips -- with two expanded deals that suggest the company could surpass its prior expectations for AI revenue.

Broadcom AVGO disclosed late Monday that it has struck a new five-year agreement to develop and supply Google's tensor processing units. Additionally, Broadcom and Google, a unit of Alphabet GOOG GOOGL, reached an agreement around networking components to be used in Google's AI racks.