The sixth in U.S. stock history! Broadcom teams up with Google, joins the $2 trillion market cap club

```

Broadcom’s market capitalization has crossed the $2 trillion threshold, becoming the sixth company in U.S. stock market history to reach this milestone, standing alongside tech giants like Apple and Microsoft. This marks how the wave of AI chips is transforming this semiconductor company into a top-valued firm.

On Wednesday, Google announced the launch of the eighth-generation Tensor Processing Unit (TPU) co-developed with Broadcom, triggering a nearly 5% surge in Broadcom’s stock price in a single day, closing at $422.65, hitting a new all-time closing high since full data records began in 2009, and marking the first new historical high since 2026. According to Dow Jones market data, Broadcom’s market valuation thus officially surpassed $2 trillion, becoming only the sixth company in U.S. stock history—after Nvidia, Alphabet, Microsoft, Amazon, and Apple—to reach this level.

Google’s simultaneous announcement confirmed the extension of their long-term agreement with Broadcom for TPU and network equipment supply until 2031, partially alleviating market concerns over whether Broadcom was losing share at Google. On the same day, the semiconductor sector rallied broadly; the iShares Semiconductor ETF (SOXX) rose about 3%, while Micron Technology and SanDisk both gained over 8%.

Seaport Research analyst Jay Goldberg told MarketWatch that Google’s TPU announcement was the main catalyst of the day, adding it is a positive signal for Broadcom. According to news from Fastwind Trading Desk and a UBS research report dated April 13, the bank sharply raised its forecast for Broadcom’s AI revenue in fiscal year 2027 to about $145.4 billion, maintaining a "Buy" rating and a $475 price target.

The Eighth Generation Google TPU Becomes the Biggest Catalyst

Broadcom has an agreement with Google to jointly develop TPUs and supply networking equipment, with the contract extended to 2031. On Wednesday, Google announced the launch of the eighth-generation TPU; Jay Goldberg named it as the primary market driver of the day. He noted that Wall Street had previously debated whether Broadcom might be losing share at Google to MediaTek or Marvell, and although this announcement "doesn't prove anything," the implication for Broadcom is viewed positively.

Morningstar analyst William Kerwin called it "indeed a good day for the semiconductor industry," highlighting that as the "lead design house" of Google's TPU, Broadcom could benefit from both price hikes and increased shipments with the new generation chip—each successive TPU generation commands a higher price due to increased memory capacity. He estimates Broadcom’s fair value at $500, higher than the closing price of $422.65 that day, emphasizing that AI chip revenue, particularly from TPUs, is currently the key growth and valuation driver for Broadcom.

Contract Extension to 2031 Temporarily Eases Share Loss Concerns

The market’s core concern previously was whether Google would reduce its reliance on Broadcom by mass-producing MediaTek TPUs. Google’s announcement of the eighth-generation TPU launch and the extended partnership provided a positive sign for this debate.

According to the UBS research note on April 13, the long-term agreement announced by Broadcom and Google, now extended to 2031, guarantees supply of multiple future generations of TPUs and rack-level critical components, addressing investor concerns over Google’s shift towards developing its own chips. Nevertheless, UBS points out that as MediaTek TPU shipments continue to rise, Broadcom’s progress on diversifying business outside of AI custom chips (ASIC) remains a key long-term focus for investors, and related risks have not been entirely eliminated.

UBS Sharply Raises Forecast, AI Revenue Target Raised to $145.4 Billion

The extension of Google’s TPU agreement plus expanded collaboration with Anthropic led UBS to significantly raise Broadcom’s profit forecasts in the April 13 report. UBS increased its revenue forecasts for Broadcom’s fiscal years 2027 (F27) and 2028 (F28) to $194.9 billion and $248.4 billion, respectively, up about 7% and 8% from prior estimates; F27 non-GAAP EPS estimate rose 7% to $22.56, and F28 by 7% to $28.59.

For AI revenue, UBS raised its F27 AI revenue forecast from $132.7 billion to $145.4 billion, and lifted the 2027 calendar year TPU shipment estimate from about 6 million units to about 7.3 million units. Regarding Google Cloud (GCP) TPU spending, UBS raised its C27 and C28 estimates from $46 billion and $61 billion, to $61 billion and $79 billion, respectively.

Anthropic’s rapid expansion is also a major incremental factor. According to Anthropic, its annualized revenue has exceeded $30 billion, a sharp jump from about $9 billion at the end of 2025; the number of customers with over $1 million annual recurring revenue more than doubled from around 500 in February to over 1,000. Starting in 2027, Anthropic will receive about 3.5 GW of TPU compute capacity, with all related infrastructure built in the U.S.

Valuation Above Historical Average, Diversification Progress Still a Long-Term Risk

UBS maintains a "Buy" rating and $475 price target on Broadcom, using the sum-of-the-parts (SOTP) valuation method—about 26x EV/FCF for $73 billion in semiconductor free cash flow in calendar 2027, and about 12x for $42 billion in software free cash flow for the same period.

At current valuation levels, Broadcom’s next-twelve-month P/E is around 26x, above the 10-year historical average of 18x; EV/FCF is about 27x, also higher than the historical average of 19x—both in relatively high ranges. In terms of earnings estimates, UBS calculates its forecasts for F27 revenue and EPS to be about 23% and 25% above the market consensus, but notes that most of its investor contacts already expect numbers in this range.

UBS also cautions that while the latest announcements marginally ease short-term TPU risk discussions, Broadcom’s diversification efforts outside of AI custom chip clients remain a key issue for long-term valuation support—a concern that will become increasingly prominent as MediaTek’s scale continues to expand.

~~~~~~~~~~~~~~~~~~~~~~~~

The above highlights are from Fastwind Trading Desk.

For more detailed interpretation, including real-time analysis and frontline research, please join [Fastwind Trading Desk Annual Membership]

Risk Warning and DisclaimerMarkets have risks; investment needs caution. This article does not constitute personal investment advice and has not taken into account the special investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions herein are suitable for their own circumstances. Investments made accordingly are at your own risk. ```