Broadcom Inc.

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Broadcom Inc. stock analysis AVGO overview
Bullish +75

J.P. Morgan Fires Back at Google Rumors Threatening Broadcom Stock - TradingView

📈 J.P. Morgan analyst Harlan Sur defends Broadcom (AVGO) against rumors of delays in Google's TPU chip programs, stating the next-gen v9 2-nanometer effort is on track for a 2028 ramp.

⚙️ Broadcom qualified its current TPU v8i 3-nanometer program by mid-2025 and expects to start ramping production this quarter.

🤝 A five-year agreement signed in March covers Broadcom's TPU roadmap through version v11 with annual revenue growth commitments extending through 2031.

🏭 New manufacturing capacity in Singapore and broader packaging capabilities are expected to come online by 2028, further strengthening operations.

💰 J.P. Morgan maintains an Overweight rating on Broadcom with a $580 price target, implying roughly 41% upside from current levels.

🚀 Analysts believe Broadcom can widen its lead even as Google explores partnerships with MediaTek for its own chip efforts.

Bullish Signals
  • J.P. Morgan analyst Harlan Sur maintains an Overweight rating on Broadcom (AVGO) and sets a $580 price target, implying approximately 41% upside potential.
  • A five-year strategic agreement signed in March covers Broadcom's TPU roadmap through version v11 and includes annual revenue growth commitments through 2031.
  • Broadcom's next-generation TPU v9 2-nanometer effort remains on track for a 2028 ramp with no delays or cancellations reported by the analyst.
  • Current TPU v8i 3-nanometer program was qualified by mid-2025 and is expected to start ramping this quarter, ensuring near-term revenue visibility.
  • Analyst Harlan Sur notes that Broadcom can keep widening its lead against Google's in-house team, which may need several years to close the gap in advanced chip design.
  • New manufacturing capacity in Singapore and broader packaging capabilities are expected to be available by 2028, enhancing long-term operational efficiency.
Full Analysis
J.P. Morgan analyst Harlan Sur issued a note defending Broadcom (AVGO) against market rumors regarding delays in Google's chip programs. The analyst asserts that the company's next-generation TPU v9, utilizing 2-nanometer technology, remains on schedule for a 2028 ramp-up with no indications of cancellation or significant setbacks. Sur highlighted that Broadcom has already qualified its current TPU v8i 3-nanometer program by mid-2025, with production expected to begin this quarter. Despite Google exploring partnerships with MediaTek for its own chip initiatives, the analyst believes Broadcom can maintain and potentially widen its competitive lead due to Google's in-house team requiring several years to catch up in advanced design capabilities. The note underscores a strategic five-year agreement signed in March that covers Broadcom's TPU roadmap through version v11. This contract includes annual revenue growth commitments extending through 2031, providing long-term visibility for the semiconductor giant. Additionally, Broadcom is poised to benefit from new manufacturing capacity in Singapore and expanded packaging capabilities anticipated by 2028. Maintaining an Overweight rating on the stock, J.P. Morgan set a price target of $580 for Broadcom shares. This valuation implies approximately 41% upside potential, suggesting that investors may have overreacted to recent reports concerning Google's chip development timeline and that the company's strategic positioning remains robust.