AI networking ramp: 8-K confirms expanded Google TPU Ironwood/Anthropic 3.5GW '27 vols/tape-outs + OpenAI 10GW + Meta + Taurus + Tomahawk 6 + OFC 2026 200T CPO/3.5D + custom $60B TAM + TSMC/laser/PCB bottlenecks + Singapore + Marvell rivalry + analysts NVDA vs AVGO buy + Hock Tan $100B AI rev + Jefferies/William Blair/BofA Buy $500 PT on Google/Anthropic + fresh Intellectia/CNBC/BofA/Smartkarma recaps + Anthropic compute details + stock pops to $333.97 +6.21%
Key Questions
What is the key deal announced between Broadcom and Google?
Broadcom signed a long-term agreement with Google to develop and supply custom AI chips for Google TPUs through 2031, including Ironwood expansions with 4.5M/7.9M tape-outs and 3.5GW capacity for Anthropic by 2027. This deal also provides additional computing capacity to Anthropic starting in 2027. Analysts from BofA, Jefferies, and William Blair maintain Buy ratings with price targets up to $500.
How did Broadcom's stock react to the Google and Anthropic deals?
Broadcom's stock rose 2.7% to 5.6% in after-hours and regular trading, reaching $334 from a four-month slide starting at $314. The pops of 3.4-5.6% reflect investor enthusiasm for the expanded AI partnerships. Trading volume increased as the stock trended on the news.
What compute capacity is Anthropic receiving from Broadcom and Google?
Anthropic is set to receive massive compute from Broadcom and Google's TPU Ironwood, including 3.5GW volumes by 2027 with tape-outs confirmed. Expansions run through 2031, supporting Anthropic's AI needs alongside $30-50B revenue potential. This bolsters Anthropic's position among AI rivals like OpenAI.
How do analysts compare Broadcom (AVGO) to Nvidia (NVDA) for investment?
Analysts (47/49 Buy ratings) favor Broadcom over Nvidia, citing superior profitability, AI chip deals, and a consensus PT of $471. BofA highlights 15%+ ASIC visibility and <18x 2027 EPS. Articles like 'Broadcom vs Nvidia: Which AI Chip Is More Profitable to Buy?' emphasize AVGO's edge.
What is Hock Tan's projection for Broadcom's AI revenue?
Broadcom CEO Hock Tan projects over $100B in AI revenue by 2027, driven by custom chips and networking for hyperscalers. This aligns with a $60B TAM for custom ASICs and deals like Google TPU and OpenAI's 10GW Titan. OFC 2026 previews Taurus 400G/200T CPO further support growth.
What are the main analyst price targets and ratings for Broadcom?
Consensus PT is $471 with 47/49 Buy ratings; Jefferies, William Blair, and BofA target $500 on Google/Anthropic deals. BofA boosts estimates for 15%+ visibility. Recent recaps from CNBC, Intellectia, and others reinforce the bullish outlook.
What are the details on Google TPU Ironwood expansions?
Google's TPU Ironwood involves 4.5M/7.9M tape-outs, 3.5GW by 2027, and $120B AI spend through 2031, with $30-50B revenue potential. Broadcom supplies custom chips, facing TSMC/laser/PCB bottlenecks. Singapore production and Marvell rivalry are noted.
What future technologies were highlighted at OFC 2026 related to Broadcom?
OFC 2026 features Broadcom's Taurus 400G/200T CPO and 3.5D packaging for AI networking ramps. These address OpenAI 10GW, Meta, Tomahawk 6 needs amid $60B custom TAM. Analysts see this boosting Broadcom's rivalry with Marvell.
Recent CNBC/Intellectia/BofA/Smartkarma confirm Google TPU/Anthropic expansions thru 2031 (Ironwood 4.5M/7.9M tape-outs/3.5GW/$30-50B rev/$120B AI '27), OpenAI Titan 10GW+ $100B; AVGO vs NVDA highlights ASIC profitability/custom shift; articles note +6.21% pops to $333.97 on deals; BofA boosts visibility 15%+ ASIC/<18x '27 EPS; OFC 2026 Taurus 400G/200T CPO; Hock Tan $100B+ 2027 AI; analysts (47/49 Buy $471 PT) buy AVGO vs NVDA.