Broadcom Forecasts Anthropic Will Overtake Google as Top Customer for Custom AI Chips
Following its fiscal Q3 earnings report, Broadcom highlighted that sales to Anthropic are expected to surpass those from Alphabet's Google division. This shift is significant given the growing demand in the artificial intelligence (AI) sector and Anthropic’s anticipated IPO this year. Broadcom anticipates a substantial increase in purchases of its XPU hardware by Anthropic, particularly for Ironwood TPU version 8i compute chips, which are expected to rise from 1 gigawatt in 2026 to 5 gigawatts in 2027. The company is also forecasting increased sales to OpenAI and expects strong demand across its custom AI chip business. Despite missing revenue guidance for the current quarter, Broadcom's long-term outlook remains robust with projected adjusted earnings per share exceeding $30 by fiscal 2028 — well above market expectations.
Topics: AI hardware sales customer shift earnings