By Henry Khederian
Publication Date: 2025-11-25 16:06:00
Broadcom Inc (NASDAQ:AVGO) stock is little changed Tuesday morning, even as fresh AI headlines highlight its growing opportunity in the AI chip space. Here’s what investors need to know.
What To Know: According to The Information, Meta Platforms is considering using Google’s custom tensor processing units (TPUs) for its data centers in 2027, and may rent the chips from Google Cloud sooner, which puts Broadcom in the slipstream of a potentially major architectural shift in AI infrastructure.
Broadcom is Google’s key silicon partner on these TPUs, meaning any large-scale Meta adoption could mean higher custom-chip revenue and better multi-year visibility. Because TPUs are customized, Broadcom can capture higher margins than on commodity networking chips, and design wins tend to lock in multi-year production tied to cloud capex cycles.
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The potential Google-Meta TPU deal also highlights that hyperscalers want to…
