Overview
- Meta and Broadcom agreed to co-design Meta’s AI accelerator chips with an initial commitment above 1 gigawatt of compute capacity, using Broadcom’s XPU platform and its optical and Ethernet networking through 2029.
- As part of the expanded tie-up, Broadcom CEO Hock Tan will leave Meta’s board and serve as an advisor to the company.
- Broadcom also disclosed April agreements with Google and Anthropic, including Anthropic’s 3.5GW compute commitment that the company said is expected to start coming online in 2027.
- Shares of Broadcom have jumped about 28% in April, extending an eight-session rally and trading near the stock’s record closing high.
- Analysts raised forecasts after the deals, with UBS lifting its 2027 TPU shipment view to 7 million units and BofA projecting $1.3 trillion in 2026 semiconductor revenue, while Goldman cited stronger long-term AI revenue visibility and flagged risks from slower AI spending, competition in custom compute, and non-AI inventory digestion.