New York, April 17, 2026, 11:38 EDT
- Goldman Sachs is sticking with its buy call on Broadcom, leaving the price target at $480, after Meta broadened its AI chip agreement with the firm.
- Meta pushed its partnership out to 2029, pointing to an initial compute commitment topping 1 gigawatt.
- Broadcom’s AI expansion increasingly hinges on just a handful of hyperscale clients, which is the core risk here.
Broadcom shares climbed roughly 1.2% to $403.18 in Friday morning trading, picking up steam after Goldman Sachs reaffirmed its buy rating and stood by a $480 target. Investors had already been chasing the stock higher on the heels of Meta’s beefed-up AI chip deal and a flurry of cloud-customer wins.
The call is in focus as investors weigh whether AI infrastructure is outpacing demand or still accelerating. TSMC CEO C.C. Wei described “AI demand is so strong” earlier this week. Positive forecasts from both TSMC and ASML flagged another robust quarter of spending by major U.S. cloud operators—a signal that matters for Broadcom, along with Nvidia and AMD. Reuters
Meta offered the standout near-term trigger. According to Reuters, the Facebook parent has renewed its partnership with Broadcom, locking in a deal that runs through 2029. The agreement kicks off with over 1 gigawatt of compute power—just phase one, both companies said, of a planned multi-gigawatt expansion.
The project spans MTIA—Meta’s own AI chips—and Broadcom’s Ethernet hardware, which connects sprawling AI server clusters. Meta has positioned newer MTIA versions for inference, the phase where a model generates responses to prompts. Zuckerberg described the partnership as key to building Meta’s “massive computing foundation” for its AI ambitions. Hock Tan, meanwhile, is stepping down from Meta’s board to become an advisor on the chip strategy. Reuters
After securing fresh wins in AI, Broadcom is piling up major deals. On April 6, the company announced a long-term custom chip pact with Google that stretches out to 2031. There’s also a separate agreement, letting Anthropic tap roughly 3.5 gigawatts of AI computing power starting in 2027. Add in Broadcom’s Meta agreement, and the company’s grip on custom silicon—chips tailor-made for a single client’s needs—tightens as industry players look for alternatives to Nvidia’s costlier gear.
Goldman’s James Schneider stuck with his $480 price target, saying the Meta partnership “further reinforces Broadcom’s technology advantage in custom silicon and AI networking.” TheStreet pointed out, referencing Schneider’s note, that Goldman’s earnings estimates for fiscal 2027 and 2028 sit roughly 14% higher than the Wall Street consensus. Benzinga
Broadcom’s leadership hasn’t shied away from pushing that narrative. Hock Tan described the first MTIA rollout as “just the beginning” of a longer roadmap. After the Meta news, Deutsche Bank, Bernstein, and JPMorgan doubled down on their upbeat outlooks, according to Investor’s Business Daily. Broadcom Inc.
Still, there’s a catch to this rally. According to Simply Wall St, the Meta agreement means even heavier reliance on a handful of buyers—Meta, Google, Anthropic. If those giants start shifting orders toward suppliers like Nvidia or AMD, it could make waves. Goldman also flags slower spending on AI infrastructure, possible losses in custom compute, and ongoing weakness beyond AI as key risks.
Broadcom’s not holding back on big targets. Last month, Reuters said the company is eyeing over $100 billion in AI chip sales by 2027. Still, details on the Meta and Google deals are thin—no dollar amounts disclosed—so investors are left to guess how fast those contracts might show up in Broadcom’s actual revenue.
