Broadcom Sees Record Sales from AI Giants Anthropic and OpenAI
Broadcom's fiscal Q3 report showed strong earnings and revenue growth, exceeding analyst expectations. However, its stock price fell due to a projected shortfall in sales for the current quarter.
A closer look at Broadcom's customer relationships reveals a significant development: sales to Anthropic are expected to surpass those of Alphabet's Google division. This is noteworthy because Anthropic is behind the AI model Claude and will likely become Broadcom's largest customer by 2027, according to the company's projections.
The Ironwood Tensor Processing Unit (TPU), designed in conjunction with Alphabet, will be in high demand from Anthropic. Broadcom expects this demand to expand from 1 gigawatt in 2026 to 5 gigawatts in 2027, while sales of the chip family to Alphabet are also expected to increase substantially.
Broadcom's leadership in custom AI processors positions it for continued success in the AI infrastructure market. The company is already benefiting from data centers built around Nvidia's ultra-high-end graphics processing units and is poised to benefit from other areas of the evolving AI compute stack, including OpenAI's deployment of Jalapeno XPU chips.