tech
Broadcom's stock jumps 6% after chipmaker expands Google, Anthropic deals
Broadcom's stock had its second-best day of the year after the chip designer announced an extension to its deal with Google.
TL;DR
- Broadcom shares increased by over 6%, marking their second-best day of the year.
- The company announced it will produce future AI chips for Google and expanded its deal with Anthropic.
- The Anthropic pact grants the startup access to approximately 3.5 gigawatts of computing capacity using Google's TPUs.
- Analysts at Mizuho maintained a buy recommendation, viewing the deals as beneficial for Broadcom's AI business.
- Broadcom's CEO anticipates AI chip revenue significantly exceeding $100 billion by 2027.
- The deals are expected to ease concerns about TPU competition and demonstrate customer demand visibility.
- Citi analysts reiterated their buy rating, forecasting Broadcom could exceed $130 billion in revenue due to the Google deal.