While much of the market’s attention remains fixed on Nvidia, a significant and perhaps underappreciated transformation is unfolding at Broadcom. The semiconductor giant has secured a pivotal advantage in the artificial intelligence race, generating considerable enthusiasm among market analysts. The excitement stems from two key strategic moves: a landmark supply agreement and a deeply entrenched partnership that together position the company for substantial growth.
A Foundational Partnership with Google
Broadcom’s distinct edge lies in its long-standing, deeply integrated collaboration with Google, a relationship spanning decades. Analysts at Susquehanna International Group highlight the success of the new “Ironwood” TPUv7 chip, for which Broadcom is the longstanding design and manufacturing partner. This business is reportedly performing “better than expected,” driven in part by Google securing significant new clients like Anthropic and, reportedly, Meta for its Tensor Processing Units (TPUs).
The projected growth trajectory is compelling. Production volumes for Google’s TPUs are expected to surge from the current 1.5 to 2 million units to as many as 9 million by 2028. As the essential partner in this ecosystem, Broadcom is perfectly positioned to capture the value from this explosive expansion.
Securing Critical Supply with a Samsung Coup
In a parallel strategic victory, Broadcom CEO Hock Tan has locked down a crucial supply agreement with Samsung Electronics in South Korea. The deal secures a substantial portion—reportedly half—of Samsung’s total annual production capacity for its next-generation HBM4 memory chips. These advanced High-Bandwidth Memory components are the heart of Google’s eighth-generation TPU, slated for launch in 2026.
Should investors sell immediately? Or is it worth buying Broadcom?
This forward-thinking move demonstrates Broadcom’s strategy to secure critical components in a supply-constrained market well ahead of time. While other chipmakers scramble for production capacity, Broadcom has carved out a comfortable and secure position for its future pipeline.
Wall Street Responds with Upgraded Targets
The market has taken clear notice of these developments. Within a short span, multiple investment banks have raised their price targets for Broadcom shares. Susquehanna, following an earlier upgrade by Bank of America, points to the same core thesis: the expanding and highly profitable partnership within Google’s TPU ecosystem provides Broadcom with a durable and defensible competitive moat.
This stands in contrast to competitors like Marvell Technology, which recently attempted to bolster its AI capabilities through the acquisition of Celestial AI. Broadcom, analysts argue, already possesses a firmly established and scaling position. The consensus on Wall Street currently reflects a strong “Buy” rating for the equity.
All focus now shifts to December 11, when Broadcom is scheduled to release its fourth-quarter and full-year 2025 financial results. The company’s massive order backlog signals robust growth figures—the central question for investors is just how robust they will be.
Ad
Broadcom Stock: Buy or Sell?! New Broadcom Analysis from December 4 delivers the answer:
The latest Broadcom figures speak for themselves: Urgent action needed for Broadcom investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 4.
Broadcom: Buy or sell? Read more here...
