Shares of Broadcom saw an after-hours gain of 2.6% following the announcement of two significant artificial intelligence partnerships. The semiconductor giant has secured a major contract with Google and expanded its collaboration with AI startup Anthropic, signaling a strengthened long-term position in the high-growth AI accelerator market.
Analyst Outlook Turns Bullish
Market analysts have responded to the news by revising their revenue projections upward for Broadcom. The consensus among 29 analysts is a “Strong Buy” rating, with an average price target of $431.24. This represents a substantial premium over Monday’s regular session closing price of $314.43.
Notable forecasts include:
* Mizuho Securities (Vijay Rakesh): Projects AI-related revenue reaching $21 billion in 2026 and $42 billion in 2027.
* JPMorgan (Harlan Sur): Estimates near-term AI revenue between $10–11 billion. The firm suggests Broadcom’s total revenue could surpass $65 billion in fiscal 2026 and reach $120 billion in 2027.
Cementing the Google Partnership Through 2031
A key development is a newly-filed SEC agreement that extends Broadcom’s strategic relationship with Google through 2031. Under this long-term pact, Broadcom will be responsible for designing and supplying future generations of AI accelerators for the tech giant. This work includes creating custom Tensor Processing Units (TPUs) and networking components destined for Google’s next-generation AI data centers.
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This contract provides Broadcom with predictable revenue streams in one of the semiconductor industry’s fastest-growing segments. Broadcom has served as the primary developer of these specialized chips for Google, a role that is now firmly cemented for the long term. TPUs, presented as an alternative to Nvidia’s GPUs, are noted for their efficiency in handling AI inference tasks.
A Tripartite Deal with Anthropic
A second, interconnected agreement involves Broadcom, Google, and AI firm Anthropic. Starting in 2027, Anthropic is set to gain access to approximately 3.5 gigawatts of TPU-based computing capacity through Broadcom. Anthropic’s CFO, Krishna Rao, described the arrangement as the “most significant compute commitment” in the company’s history.
The deal is structured to scale with Anthropic’s growth. At the time of the announcement, Anthropic confirmed its annualized revenue now exceeds $30 billion, a sharp increase from the $9 billion reported at the end of last year.
Upcoming Corporate Events
Shareholders will gather for the annual meeting in Palo Alto on April 20. The agenda includes the election of directors and the ratification of the company’s independent auditor. Investors will be watching for early signs of the financial impact from these new agreements when Broadcom releases its next quarterly report on June 4, 2026.
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