Overview
- Broadcom and Meta unveiled a multi‑year partnership to co‑develop Meta’s MTIA chips, starting with an initial commitment above 1 gigawatt and a planned multi‑gigawatt rollout over three years.
- Under the Meta pact, Broadcom supplies high‑speed Ethernet switches, optics, and SerDes, and CEO Hock Tan shifts from Meta’s board to an advisor role on silicon strategy.
- Mizuho reiterated an Outperform rating after meetings with Broadcom leaders and lifted AI revenue estimates to $132 billion by 2028, while JPMorgan’s Harlan Sur sees potential to top $120 billion in fiscal 2027.
- Recent results reinforced that outlook as AI chip sales doubled to $8.4 billion, guidance called for roughly $22 billion in second‑quarter revenue, and management cited line of sight to more than $100 billion in AI chip revenue by fiscal 2027 with a $73 billion order pipeline.
- Shares have been sensitive to competitive headlines, with a report of Google talks with Marvell prompting a brief pullback even as deal momentum, including a new Google Cloud network analytics tie‑in, helped push the stock to fresh highs.