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Analysts Tout Broadcom’s AI Edge as New Risks Keep Shares Unsettled

Goldman says GoogleBroadcom TPUs now rival Nvidia on inference costs, strengthening the case for Broadcom’s AI custom silicon.

Overview

  • Jim Cramer said he will not call a bottom for Broadcom after a fresh drop, noting shares are up about 59% over the past year but down roughly 4.9% year to date.
  • Goldman’s analysis found TPU v7 cut inference cost per token by about 70% versus TPU v6, placing it on par or slightly better than Nvidia’s GB200 NVL72 on absolute cost.
  • Banks kept a positive stance with picks and upgrades during January, and Broadcom raised $4.5 billion via senior notes to support growth and refinancing.
  • Forbes flagged near‑term threats including VMware customer defections, a £100 million Tesco lawsuit, China’s directive to remove foreign software by mid‑2026, and new U.S. 25% tariffs on advanced AI chip exports.
  • The stock’s history of rapid declines and a rich valuation were highlighted alongside strong recent growth metrics, underscoring ongoing volatility despite an upbeat AI narrative.