Broadcom's AI GW-Capacity Commitments and $179.2B RPO Signal Dominant TPU Share
AVGO sits 21% above its 52-week low of $289.96.
Summary
Broadcom's weekly recap reveals massive AI infrastructure commitments: Anthropic plans 5 GW TPU v8i in FY2027 and 10 GW in FY2028, OpenAI 5 GW Jalapeño-family in 2028, and Meta 3 GW MTIA through 2028. The company also reported $179.2B in remaining performance obligations, with about 25% expected to convert to revenue in the next 12 months. Broadcom, Apollo, and Blackstone are backing a $35B infrastructure fund to support 20+ GW of compute, with Broadcom guaranteeing equipment residuals but not customer demand. MediaTek has joined Alphabet's TPU program, and JPMorgan estimates Broadcom may capture about two-thirds of Alphabet's TPU business. CEO Hock Tan confirmed at the Goldman Sachs tech conference that chip supply is secured for 2027, with multi-year procurement being arranged for 2028. This follows the Q3 FY26 earnings beat and the Apple ASIC supply extension through 2031, reinforcing Broadcom's central role in AI silicon.
At the time of this announcement, AVGO was trading at $349.54 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $289.96 to $495.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.