Broadcom shares, trading near €345.40, have more than doubled over the past year, a staggering 133% gain that reflects the company’s iron grip on the custom AI accelerator market. Yet even as the stock flirts with its 52-week high, a subtle shift is occurring among its most powerful clients, testing the limits of its celebrated dominance.
The catalyst emerged from reports that Google is in talks with Marvell Technology to develop two new AI chips, including a memory-processing unit. While neither company has confirmed the discussions, the market reaction was telling: Marvell’s stock jumped nearly 5%, while Broadcom’s dipped around 2%. This move, however, is less a direct assault and more a strategic recalibration by the search giant. Google is building a multi-vendor architecture where Broadcom remains the lead for training chips, MediaTek handles inference, and Marvell could take on a new, specialized role. This diversification grants Google more negotiating leverage and supply chain security but does not displace Broadcom’s core contracts.
Indeed, Broadcom’s fortress is built on formidable, long-term foundations. The company recently extended its agreement with Google through 2031, securing its role in designing and networking the tech giant’s AI systems. Its strategic partnership with Meta, now running through 2029, involves designing the next generation of Meta’s AI chips using an advanced 2-nanometer process. Meta paid Broadcom $2.3 billion for AI chip design last year. Furthermore, AI startup Anthropic has secured massive computing capacity from Broadcom starting in 2027.
This flood of business is translating directly to the bottom line. In its first quarter, Broadcom generated $8.4 billion in AI-related revenue, a 106% year-over-year surge. For the second quarter ending May 3, 2026, the company is targeting total revenue of approximately $22 billion.
The company’s commanding market position is clear. It currently holds over 70% of the market for custom AI accelerators. While research firm Counterpoint expects this share to settle around 60% by 2027—with Marvell capturing roughly 25%—the overall pie is exploding. The total market is projected to grow to $118 billion by 2033, with revenue expected to jump 45% next year alone.
Should investors sell immediately? Or is it worth buying Broadcom?
Investors are pricing in this exceptional growth, valuing the stock at a price-to-earnings ratio of about 76, far above the U.S. industry average of 47. This premium leaves little room for error. The stock’s Relative Strength Index (RSI) reading of 70 also signals it may be technically overbought in the near term.
At Broadcom’s annual meeting in Palo Alto on April 20, shareholders reaffirmed their confidence. They re-elected all eight directors, including CEO Hock E. Tan and co-founder Henry Samueli, and approved the executive compensation plan with approximately 2.4 billion votes for and 1.2 billion against. PricewaterhouseCoopers was ratified as the auditor through fiscal year 2026.
Analyst sentiment remains robust following the Marvell news. Mizhuo reiterated an Outperform rating with a $480 price target. Bernstein SocGen also maintained Outperform, citing the extended Meta partnership to support its $525 target. Benchmark holds a Buy rating and a $485 target, expressing increased confidence in Broadcom’s 2027 AI revenue goals.
The era of Broadcom’s unchallenged supremacy in custom AI silicon may be evolving, but its strategic contracts and embedded market position suggest it is far from over. The upcoming quarterly results will be the next key indicator of whether the company can maintain its blistering pace even as its biggest customers spread their bets.
Ad
Broadcom Stock: Buy or Sell?! New Broadcom Analysis from April 22 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 April 22.
Broadcom: Buy or sell? Read more here...
