KeyBanc Reiterates Overweight on Broadcom, $575 Price Target

KeyBanc analyst John Vinh reiterated an Overweight rating and $575 price target on Broadcom Limited (NASDAQ: AVGO).

“Given the $63B Anthropic financing, it should not be a surprise AVGO has won the ASIC design.

We are also providing add’l AI updates and clarifying AVGO has not lost META’s MTIA Apollo to MTK as we previously had heard, as this has not been awarded.

Reg OpenAI’s Jalapeño, lifetime vols have been revised upward to 1M-1.5M units from 1M prior.

Finally, we are updating the TPU roadmap with Whale Fish TPU v9i, which has been awarded to AVGO.

Despite some share shifts, we still view AVGO as the dominant AI ASIC provider, remains well pos to exceed AI revs of $115B/$230B in F27/F28. Maintain OW.

META’s MTIA 700 ASIC (Apollo) has not been awarded to Mediatek and remains up for bid with AVGO. We had previously indicated Mediatek had previously been awarded MTIA’s training ASIC Apollo over AVGO.

Upon further diligence, we believe this to be incorrect, and the award decision is still pending. We still, however, believe GUC has been awarded META’s MTIA 600 Phoebe inferencing ASIC over AVGO.

Given the $63B financing, it should not be a surprise AVGO has been awarded the Anthropic ASIC expected late ’28/early ’29.

When we were in Asia last month, we had heard the Anthropic ASIC was still undecided between AVGO and MTK, but feedback from the supply chain had indicated AVGO was very likely to be awarded this socket.

We believe this ASIC has now been officially awarded to AVGO. We expect this to be a sizable project with 5M-10M lifetime unit volumes.

Updates to Google TPU roadmap; No changes to our view between the split between AVGO/MTK; Adding TPU v9i (Whale Fish) to the roadmap.

We had previously omitted TPU v9i (Whale Fish) from the roadmap, which has been awarded to AVGO and is based on N3 and is a MCM (Multi-Chip Module) based on two Sun Fish dies.

We expect AVGO to maintain ownership of Merope/Blade Runner (TPU v10i), which is based on TSMC’s N2P. We expect v10i to be a very large chip with 16 compute dies vs.

2 on Sun Fish, which should drive a meaningful step up in ASPs for AVGO.

We expect AVGO to maintain share of the more performant inferencing TPU SKUs and expect MTK to continue to own the training TPU SKUs (Zebra Fish, Humu Fish, Ice Fish).

Expect OpenAI’s Jalapeño to ramp this year (100K), while lifetime volumes have been revised upward to 1.5M-2M units. We had previously indicated the ramp of Jalapeño to start in 2H27.

This was a typo as it is ramping in 2H26 with 100K units expected to be produced this year. While lifetime volumes were 1M, we believe this has been revised upward to 1M-1.5M units.”

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