Alphabet’s Google is making waves in the AI chip market with its TPUs, but Morgan Stanley believes Broadcom offers a better investment opportunity, raising its price target to $443. Broadcom supports Google’s TPUs and is a key player in the custom AI chip space.

Google’s Ironwood TPU is four times faster and 30 times more power-efficient than its predecessor. Major wins include Anthropic deploying up to one million TPUs. Analysts are bullish on Broadcom, with price targets raised. ASIC demand is rising, benefiting Broadcom’s business.

Broadcom CEO aims for over $120 billion in AI revenue by 2030. The company focuses on a small group of customers developing large language models and AGI. Tan emphasizes Broadcom’s strength in designing AI accelerators and efficient network connections for generative AI.

Broadcom is working on optical interconnects for faster bandwidth, connecting hundreds of thousands of accelerators efficiently. The company expects a shift to silicon photonics by 2026-2027. Tan sees Ethernet overtaking proprietary interconnects as hyperscalers adopt custom accelerators.

Analysts predict Broadcom’s revenue to grow from $63.3 billion in 2025 to $177 billion in 2030. Earnings per share are forecast to rise from $6.75 to $22.20. AVGO stock could see over 100% upside by late 2029. Analysts favor a “Strong Buy” on AVGO, with an average price target of $409.84.

Disclaimer: The author has no positions in the mentioned securities. Information provided is for informational purposes only. Source: Barchart.com.

Read more at Yahoo Finance: Google Is Gaining Ground in TPUs, But This 1 Other Chipmaker Is Still a Strong Buy According to Morgan Stanley