Overview
- Broadcom is highlighted for custom AI ASIC momentum, boosted by Alphabet’s TPU program that Broadcom helped develop.
- Anthropic is reported to have placed a $21 billion TPU order with Broadcom for delivery this year, with OpenAI also working with Broadcom on custom chips.
- Citigroup estimates cited in the piece suggest Broadcom’s AI revenue could exceed $50 billion this fiscal year and potentially double again in fiscal 2027.
- Broadcom generated just under $64 billion in total revenue in the most recent fiscal year, framing the scale of the projected AI ramp.
- TSMC is described as the sole advanced-node manufacturer operating at scale with shares trading near 20x forward earnings and a PEG below 0.8, while Amazon is portrayed as undervalued with accelerating cloud growth.