A dominant force in the field of ASICs-custom-designed specialized chips-Broadcom has established itself as a key player in the AI ecosystem. The company notably contributed to the development of Alphabet's Ironwood TPU. The success of models such as Gemini has thus benefited both Google and Broadcom, whose market visibility continues to grow.

Just a few days ago, the group announced the extension of its agreement with Alphabet and Anthropic regarding Ironwood TPUs through 2031. According to Vijay Rakesh, an analyst at Mizuho Securities, this deal "solidifies AVGO's leadership in the AI ASIC market through 2031 (compute and networking)," while helping it capture advanced technologies and significantly increase revenues tied to these partners. He also highlights that this momentum could represent over 40% to 64% of Broadcom's revenue, with considerable growth prospects as computing power requirements escalate.

Harlan Sur, an analyst at JP Morgan, expressed a highly positive outlook on this announcement in his April 7 note. "This agreement, which combines a long-term development agreement (LTA) with revenue commitments for the next four generations of TPUs and a component and networking supply agreement, provides multi-year visibility across AVGO's two most important AI product lines. It thus consolidates its position as the preferred partner for silicon and connectivity within the deployment of Google's AI infrastructure for the next decade. This point is particularly significant given current investor debates regarding the sustainability of custom chips and the risk of customer concentration in this segment."

Prospects bolstered by Anthropic rumors

In parallel, rumors reported by Reuters suggest a potential deepening of ties between Broadcom and Anthropic. The AI startup, the creator of Claude, is reportedly considering designing its own chips. While these projects remain at a preliminary stage, they could pave the way for a collaboration with Broadcom, given its recognized expertise in ASICs. As a reminder, the San Jose-based firm announced a partnership with OpenAI in late 2025 aimed at creating an in-house chip for the creators of ChatGPT.

This speculation is heightening investor interest, especially since competition in this segment remains limited. Marvell Technology appears to be one of the few players capable of competing, with its chips notably used by Amazon Web Services (Trainium chips) and Microsoft (Maia chips).

In this context, Broadcom confirms its strategic position at the heart of the artificial intelligence value chain, benefiting from both solid partnerships and a particularly buoyant market environment.