Susquehanna Sees Strong AI Tailwinds for Broadcom

Broadcom (AVGO) remains well-positioned to drive further revenue growth, supported by robust demand in AI networking and its long-standing partnership with Google on custom silicon, including the new Ironwood (TPUv7) chip.

Susquehanna analysts, led by Christopher Rolland, reiterated their bullish stance, citing multiple catalysts fueling Broadcom’s AI momentum.

Ironwood Adoption Surges With Anthropic and Meta

Broadcom has partnered with Google on TPU development for nearly 10 years, and early traction for the TPUv7 Ironwood chip is exceeding expectations:

Google signed Anthropic earlier this quarter for up to 1M TPUs
Meta is also reported to be a major customer
Broadcom’s custom silicon leadership continues to strengthen across hyperscalers

Last quarter, CEO Hock Tan revealed that one of Broadcom’s XPU prospects became a qualified customer—believed to be Anthropic—representing over $10B in AI rack orders expected in 2H FY26.

Expanding AI Rack Deals Strengthen Visibility

Susquehanna also pointed to a significant new deal with OpenAI, where Broadcom has agreed to supply up to 10 gigawatts of AI racks—another major validation of its manufacturing scale and custom-silicon strategy.

Analyst Rating and Price Target

Susquehanna:

Raised price target: $450 → $400
Rating: Positive
The firm expects Broadcom’s AI pipeline, hyperscaler partnerships, and custom chip leadership to support continued upside.