JPMorgan analyst Harlan Sur maintained an Overweight rating and a $475 price target on Broadcom, citing the company's significant 18-month head start in custom AI chips and its dominant position supplying Google's Tensor Processing Units (TPUs).
- The analyst highlighted that Broadcom's next-gen 3nm Sunfish TPU has already been qualified by Google, while Google's competing internal Zebrafish program faces repeated delays.
- Sur projects Google will deploy 6-7 million TPU units by 2027, with over 95% powered by Broadcom silicon, noting that the company is already designing Google's next 2nm TPU for 2028 production.
- Following the positive report and the analyst's recommendation to "buy aggressively," Broadcom's stock rose 1.93% to $320.10.