Overview
- A joint announcement April 7 by Broadcom, Google, and Anthropic detailed a long‑term TPU design‑and‑supply pact and networking supply assurance with Google through 2031, plus Anthropic’s plan to tap about 3.5 gigawatts of TPU compute starting in 2027.
- Following the April 7 news, Broadcom shares jumped about 6% as investors weighed the added order visibility from Google and Anthropic.
- Fiscal Q1 results showed $8.4 billion in AI chip revenue, up 106% year over year, on $19.3 billion in total sales, and management has cited a custom‑silicon backlog above $73 billion.
- Seaport Research downgraded AVGO to Neutral, pointing to tight industry supply, growing customer‑financing needs, and a valuation that it says already prices in recent gains.
- Broadcom said Anthropic’s access depends on the startup’s continued commercial success, and reports place Anthropic’s revenue run rate near $30 billion, reinforcing the scale of its compute commitment.