Broadcom stock rises 4% on Google, Anthropic chip deals
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Broadcom disclosed a new five-year agreement to develop and supply Google's tensor processing units, plus a separate deal covering networking components for Google's AI racks.
- Anthropic will access about 3.5 gigawatts of TPU compute through Broadcom starting next year, with Broadcom noting the arrangement depends on Anthropic's continued commercial success.
- Anthropic reported run-rate revenue exceeding $30 billion, up from roughly $9 billion at the end of 2025.
- Bernstein analyst Stacy Rasgon said Broadcom's prior forecast of about $100 billion in AI revenue for fiscal 2027 is "looking increasingly light," estimating every $10 billion in incremental revenue equates to roughly $1 in incremental EPS.
- Broadcom shares rose more than 4% in Tuesday morning trading, though the stock remains down 5% year-to-date.
- Anthropic emphasized it trains and runs Claude on a range of AI hardware — AWS Trainium, Google TPUs, and Nvidia GPUs — underscoring that big AI companies are diversifying their supply arrangements.
Why it matters: Analysts say Broadcom's expanded Google TPU deal and new Anthropic arrangement put the chipmaker in position to exceed its prior ~$100 billion fiscal 2027 AI revenue forecast. Bernstein's math — every $10 billion in incremental revenue equals roughly $1 in EPS — quantifies the earnings upside, while Anthropic's jump to over $30 billion in run-rate revenue underpins the compute demand Broadcom is now positioned to serve.
