In a note to clients Tuesday, analysts at JPMorgan said Broadcom (NASDAQ:AVGO) has recently won follow-on/next-gen 3nm AI TPU ASIC wins at META and GOOGL.
The firm believes that Broadcom is on schedule to release its 3nm AI accelerator (TPU) custom chip (ASIC) programs with Google (NASDAQ:GOOGL) (TPU v6) and Meta (NASDAQ:META) (MTIA TPU) in the middle of this year, ramping production in the second half of this year and through 2025.
"Overall, we estimate that Google and Meta combined will drive $9B+ in AI ASIC chip revenues for Broadcom this year (Google ~$8B+ and Meta around $500M-$1B), up almost 2.5x over CY23," wrote analysts.
"More importantly, as we said back in 2022, we believe that Meta remains on track to become Broadcom's next multi-billion dollar per year AI ASIC customer potentially starting in CY25," the bank added.
Overall, analysts see $10 billion to $12 billion in total AI semiconductor shipments this year for AVGO, with the potential for positive EPS revisions as the year unfolds. This is driven by its 3rd AI ASIC customer ramp (which analysts believe is Bytedance/TikTok) this year, strong AI-driven demand for the team's Tomahawk 5 and Jericho 3 switching/routing chipsets, and strong demand for its PCIe Gen5/Gen6 switching solutions.