Overview
- Broadcom and Alphabet extended their long‑running agreement through 2031 to build future generations of Google’s Tensor Processing Units, which are custom AI chips designed by Google and manufactured as data‑center hardware by Broadcom.
- Anthropic is slated to access about 3.5 gigawatts of TPU compute starting in 2027, with capacity delivered through Google Cloud and through Broadcom for Anthropic‑managed servers, subject to Anthropic’s commercial performance.
- UBS raised its Broadcom fiscal 2027 AI revenue estimate to $145 billion and lifted total revenue forecasts, and it now pegs Anthropic‑linked TPU orders at roughly $50 billion with about 7 million TPUs shipping in 2027.
- Broadcom previously guided to about $100 billion in custom AI chip revenue in fiscal 2027 and has said TPU sales carry gross margins similar to its broader semiconductor business, pointing to durable profitability if volumes materialize.
- Analyst reaction diverged after the disclosures, with Mizuho and BofA staying positive as Seaport Global moved to Neutral, while coverage framed the moves as strengthening TPUs for large‑scale inference and pressuring Nvidia’s general‑purpose GPUs.