Broadcom Inc. (NASDAQ:AVGO) remains on track for explosive AI revenue growth as its custom chip programs with Alphabet Inc.’s (NASDAQ:GOOGL) Google and other hyperscalers advance, according to JPMorgan.
Analyst Harlan Sur reiterated an Overweight rating on Broadcom on Thursday, saying recent research suggests fiscal 2026 AI revenue could exceed $56 billion. That would represent growth of more than 180% year over year. JPMorgan expects AI revenue to grow another two to 2.5 times in fiscal 2027.
Broadcom Google TPU Roadmap Remains Intact
JPMorgan pushed back against concerns about competition and potential disruptions to Broadcom’s Google TPU business.
The firm said Broadcom has started ramping Google’s next-generation 3-nanometer TPU v8i ASIC. It also expects the 2-nanometer TPU v9 to ramp in early 2028.
JPMorgan said an April five-year agreement between Google and Broadcom remains in effect. The deal secures Broadcom’s role across four TPU generations, from v8 through v11. It also includes commitments for rising annual TPU-related revenue through 2031.
The firm said reports of potential TPU v9 delays or cancellations do not match its research. Broadcom has also started early intellectual property design work for the subsequent TPU v10 generation.
AI Networking Demand Outstrips Supply
JPMorgan also pointed to strong demand for Broadcom’s AI networking products. Demand for Tomahawk 5 and the next-generation Tomahawk 6 remains above Broadcom’s supply capacity for this year and next year, the analysts said.
Beyond Google, Broadcom’s custom AI chip programs with Meta Platforms Inc. (NASDAQ:META), OpenAI, Anthropic, ByteDance Ltd., Alibaba Group Holding Limited (NYSE:BABA), SoftBank Group Corp. (OTC:SFTBY)-backed Arm Holdings plc (NASDAQ:ARM), Apple Inc. (NASDAQ:AAPL) and SambaNova Systems Inc. remain in various stages of design, ramp or production, according to the report.
JPMorgan said investors continue to underestimate Broadcom’s position in custom AI silicon. The firm noted that Broadcom has helped Google bring 14 advanced chip designs to market over the past 12 years and reiterated its bullish stance on the stock.
Broadcom Price Action
AVGO Price Action: Broadcom shares were up 0.23% at $363.32 at the time of publication on Thursday, according to Benzinga Pro data.
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