""The key factor is this is a five-year long-term agreement between Broadcom and Google. This is a technology that is rivaling Nvidia AI and in combination with Samsung earnings we had earlier today as well it is quite clear the AI demand trade is still alive and well and its appetite for these solutions.""
""Broadcom's AI chip revenue already came in at $8.4 billion in Q1 FY2026, up 106% year-over-year. CEO Hock Tan has set a target of exceeding $100 billion in AI sales by 2027, with Q2 guidance calling for AI semiconductor revenue of $10.7 billion.""
""Google's TPUs, designed with Broadcom, are purpose-built for specific AI workloads where custom silicon outperforms general-purpose GPUs on performance and cost per inference.""
Broadcom and Google have established a five-year agreement for TPU and networking supply, extending through 2031. This partnership enhances revenue visibility for Broadcom, reducing speculation around growth targets. Broadcom's AI chip revenue surged to $8.4 billion in Q1 FY2026, with a goal of exceeding $100 billion in AI sales by 2027. The deal highlights a shift in AI infrastructure, as custom silicon from Google is designed to outperform general-purpose GPUs, indicating a competitive landscape with multiple potential winners.
Read at 24/7 Wall St.
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