Broadcom seemingly secured two wins with Google and Meta – JPMorgan

In a demonstrate to customers Tuesday, analysts at JPMorgan acknowledged Broadcom (NASDAQ:AVGO) has now not too prolonged ago gained phrase-on/subsequent-gen 3nm AI TPU ASIC wins at META and GOOGL.

The firm believes that Broadcom is on time desk to originate its 3nm AI accelerator (TPU) custom chip (ASIC) programs with Google (TPU v6) and Meta (MTIA TPU) in the center of this year, ramping manufacturing in the 2d half of this year and thru 2025.

“Total, we estimate that Google and Meta combined will drive $9B+ in AI ASIC chip revenues for Broadcom this year (Google ~$8B+ and Meta spherical $500M-$1B), up nearly 2.5x over CY23,” wrote analysts.

“Extra importantly, as we acknowledged encourage in 2022, we mediate that Meta remains on target to change into Broadcom’s subsequent multi-billion buck per year AI ASIC customer potentially starting in CY25,” the bank added.

Total, analysts peek $10 billion to $12 billion in total AI semiconductor shipments this year for AVGO, with the functionality for definite EPS revisions as the year unfolds. Right here’s driven by its third AI ASIC customer ramp (which analysts mediate is Bytedance/TikTok) this year, stable AI-driven ask for the team’s Tomahawk 5 and Jericho 3 switching/routing chipsets, and stable ask for its PCIe Gen5/Gen6 switching solutions.