Under the expanded agreement with Anthropic, the AI firm will gain access to roughly 3.5 gigawatts of computing capacity, leveraging Google’s AI processors. The move is seen as providing additional reassurance to investors amid a volatile market environment.
Broadcom’s stock has had a challenging start to 2025, slipping nearly 10% year-to-date as investor sentiment cooled on technology names. The company has also been affected by broader geopolitical tensions following the U.S.-Israeli attack on Iran that began on February 28, which contributed to a turbulent trading backdrop.
The decline in share price came despite a strong earnings report in March, where CEO Hock Tan highlighted robust demand for Broadcom’s chips. Tan projected that AI-related chip revenue could exceed $100 billion by 2027, driven by the rising need for custom silicon designs.
Analysts welcomed the recent announcements. “The deal includes revenue commitments across that timeline, which should help ease some of the recent nervousness around TPU competition and give a clearer signal that its largest customer sees meaningful demand visibility well into the future,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “We already saw upside to medium-term revenue and profit expectations off the back of recent results; these new deals help underpin that idea if deployment ramps as planned.”
Citi analysts maintained their ‘Buy’ rating on Broadcom, citing the Google deal as a catalyst for revenue growth. The firm expects Broadcom to exceed its $100 billion revenue target, potentially reaching over $130 billion as AI demand drives sales.
The developments signal confidence in Broadcom’s strategic positioning within the AI chip market, reinforcing its role as a key supplier for leading AI developers and strengthening its medium- to long-term growth outlook.