Broadcom Locks In Long-Term AI Supply Deals With Google and Anthropic

Overview

• Broadcom disclosed multi-year agreements that include supplying Google with future Tensor Processing Units, or TPUs, through 2031 and enabling Anthropic to tap roughly 3.5 gigawatts of compute starting in 2027.
• Following Tuesday’s 6% stock jump on the news, investor interest rose as the deals suggest steadier revenue tied to AI data center growth.
• Seaport Research cut the stock to Neutral on April 8 and flagged supply constraints and rising customer financing needs, arguing recent gains now match consensus views.
• Broadcom reported AI chip sales of $8.4 billion in its fiscal Q1, up 106% year over year, and guided fiscal Q2 AI revenue to $10.7 billion, signaling a rapid ramp.
• Anthropic said the arrangement supports a planned $50 billion infrastructure build and claimed its Claude model is running at more than $30 billion in annualized revenue in 2026, pointing to the scale of expected demand.