Broadcom shares gain over 6% as Alphabet unveils $80 billion fundraising plan backed by Berkshire Hathaway investment

Alphabet announced plans to raise $80 billion in equity, comprising a $10 billion private placement to Berkshire Hathaway, $30 billion through concurrent public offerings (split evenly between depositary shares tied to mandatory convertible preferred stock and Class A and C common shares), and a $40 billion at-the-market programme launching in the third quarter.

Berkshire Hathaway will receive $5 billion in Class A shares at $351.81 apiece and $5 billion in Class C shares at $348.20, both priced below Monday's close. This investment extends Berkshire's position, which has grown to $16.6 billion in Alphabet holdings, making it one of Berkshire's largest common stock holdings.

Broadcom, which has a long-term deal with Google through 2031 to develop and supply custom AI chips and components, saw its shares gain over 6% in premarket trading Tuesday following the announcement.