Overview
- An SEC filing Monday detailed a long-term deal to build Google’s future Tensor Processing Units and a supply assurance pact for networking gear through 2031, plus an expanded Anthropic agreement that grants about 3.5 gigawatts of AI compute starting in 2027.
- Broadcom reported $19.3 billion in fiscal Q1 revenue and guided to about $22 billion for Q2, with AI chip sales of $8.4 billion last quarter and a $10.7 billion target this quarter.
- CEO Hock Tan said he has line of sight to more than $100 billion in AI-only revenue in fiscal 2027, citing secured supplies of leading-edge wafers and high-bandwidth memory through 2028.
- Following Tuesday’s disclosures, the stock rose about 6% as Bank of America reiterated a Buy rating with a $450 target, while Erste Group downgraded the shares to Hold over software growth and goodwill amortization concerns.
- Bank of America estimated Broadcom’s hardware content at roughly $10 billion to $15 billion per 1 gigawatt of deployed AI capacity, showing how large cloud buildouts can translate into multi-year chip and networking sales.