Broadcom Inc. (NASDAQ:AVGO) has expanded its long-running partnership with Lloyds Banking Group through a multi-year agreement aimed at accelerating the bank's digital transformation strategy.

Under the deal, Lloyds will broaden its adoption of Broadcom's infrastructure software, including VMware Cloud Foundation and mainframe solutions, to reinforce the resilience, agility, and scalability of its technology systems.

The initiative is designed to deliver faster, more reliable digital services to Lloyds' 28 million U.K. customers while supporting the bank's modernization push.

Also Read: Broadcom Ties CEO Fortune To Explosive AI Revenue Targets

Broadcom will play a central role in consolidating Lloyds' data centers and creating a consistent private cloud operating model.

The framework combines the flexibility of public cloud with the performance, security, and cost benefits of on-premises infrastructure.

It will support workloads ranging from traditional and modern applications to those driven by artificial intelligence, while ensuring unified governance and controls.

The announcement comes as Broadcom continues to benefit from rising demand across the AI ecosystem. Tech majors such as Microsoft (NASDAQ:MSFT) are accelerating AI investments, fueling appetite for Broadcom's Custom Application-Specific Integrated Circuits (ASICs).

Analysts highlight that the company's position in ASICs is increasingly competitive with Nvidia's (NASDAQ:NVDA) dominance in graphics processing units, particularly among hyperscalers and vertical AI markets.

Macquarie analyst Arthur Lai recently initiated coverage with an Outperform rating and a $420 price forecast, pointing to Broadcom's growing ASIC market share.

The stock has surged more than 55% year-to-date, significantly outperforming the Nasdaq 100's 16% gain. The rally has been supported by stronger-than-expected third-quarter results, which included $15.95 billion in revenue and a 63% increase in AI-related sales.

Momentum has been further reinforced by Broadcom's confirmation of a $10 billion AI chip order from OpenAI, underscoring its ability to capture large-scale contracts in the rapidly expanding sector.

Price Action: Broadcom shares were trading lower by 0.14% to $359.51 premarket at last check Wednesday. 

Read Next:

• AI Chip Stocks Gain After Oracle Earnings And Mega Cloud Deals

Photo by Tada Images via Shutterstock