Broadcom (NASDAQ:AVGO) capitalized on Wall Street’s artificial intelligence boom Thursday, fueled by billions in chip investments from Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and other technology giants.
Broadcom has emerged as one of the biggest beneficiaries of the generative AI boom, carving out a strategic niche in the rapidly evolving chip market.
While competitors like Nvidia (NASDAQ:NVDA) offer off-the-shelf, high-performance GPUs, Broadcom focuses on designing custom AI chips for its hyperscale customers, the tech giants that own and operate the world’s largest data centers.
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This approach allows companies like Microsoft, Meta, and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) to tailor silicon to their exact needs, offering a compelling, often less expensive, alternative to the pricier, general-purpose Nvidia chips.
By helping these key players design their proprietary AI accelerators, Broadcom solidifies its foundational role in the sector, ensuring its technology is deeply integrated into the core infrastructure of the AI revolution.
KeyBanc Capital Markets reinforced this outlook by reiterating its Overweight rating on Broadcom and raising its price forecast to $420 from $400, citing the company’s foundational position in AI and the broader semiconductor supply chain.
Following recent channel checks, analyst John Vinh said that the supply chains of Nvidia and Broadcom “sound the best,” as upward revisions are coming to chip-on-a-wafer-substrate (CoWoS) supply.
Broadcom’s trajectory as a core AI beneficiary is evident in its expanded targets. Its 2026 CoWoS supply goal has climbed to 190,000 units, reflecting an anticipated year-over-year increase exceeding 160%, Vinh noted.
A critical factor in its AI dominance remains control over Alphabet’s Google TPU franchise through 2026, with volumes expected to more than double.
Additionally, Broadcom has secured significant new AI ASIC orders, including 400,000-500,000 units for OpenAI and roughly 100,000 units for Apple (NASDAQ:AAPL), reinforcing its influence over AI development and production.
Analyst John Vinh raised the price forecast to $420 based on $10.37 fiscal 2026 consolidated earnings per share (EPS).
Price Action: AVGO stock was trading higher by 2.31% to $341.10 at last check Thursday.
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