Broadcom: Latest Announcement From Meta Aligns With Our Bullish XPU Call

Key Morningstar Metrics for Broadcom

• : $500
• : ★★★★

• Morningstar Economic Moat Rating

  : Wide

• Morningstar Uncertainty Rating

  : High

Broadcom AVGO announced a multiyear partnership with Meta Platforms for its custom MTIA XPU chips. The partnership includes one gigawatt as the start of a multigigawatt buildout that encompasses XPUs, networking, and optical chips. No timeline was provided.

Why it matters: The partnership aligns with our bullish XPU growth expectations for Broadcom through 2030. We believe XPUs are a critical complement to GPUs for large-scale inference customers pursuing better cost, better performance, and reduced vendor lock-in.

• We see this as an official publication of an existing partnership. Broadcom has already been Meta’s MTIA partner for chip design, and Meta has been aggressively expanding its MTIA roadmap. This follows the public announcements from Anthropic and Google, with Broadcom announcing a week earlier.
• We project about…