Overview
- Goldman Sachs reports Google/Broadcom TPU v7 cut inference cost per token by about 70% versus TPU v6, putting it on par or slightly better than Nvidia’s GB200 NVL72 on absolute cost in its analysis.
- Wells Fargo upgraded Broadcom to Overweight with a $430 price target and now models AI semiconductor revenue of roughly $52.6 billion in 2026 and $93.4 billion in 2027, highlighting a roughly $73 billion infrastructure software pipeline.
- Broader sell-side support continues, with Bank of America naming Broadcom its top pick for 2026, Citi keeping a Buy with a $480 target, Bernstein reiterating Outperform, and JPMorgan featuring the stock in its monthly tech ideas.
- Forbes flags operational risk in the VMware unit, citing steep customer price hikes, a £100 million Tesco lawsuit, and Gartner’s projection of market share erosion by 2029 that could pressure high-margin software revenue.
- Geopolitical pressures include China’s directive to remove foreign software by mid-2026 and new 25% U.S. tariffs on advanced AI chip exports, with Forbes noting roughly 17% China exposure and a recent share drop after the policy news alongside ongoing volatility tied to margin-mix disclosures.