Broadcom Reaches $1.76 Trillion Amid AI Rally Fueled by Strong TSMC Results
Broadcom shares surged late last week after Taiwan Semiconductor Manufacturing Company reported record first-quarter revenue. As a result, the rally pushed the chipmaker’s market value to $1.76 trillion as of April 11.
Specifically, TSMC revealed quarterly revenue of NT$1.13 trillion, or about $35.6 billion. This figure marks a 35% increase from the previous year and slightly exceeds analyst expectations. Moreover, March alone generated NT$415 billion in sales, reflecting a 45% year-over-year jump and setting a new monthly record.
Consequently, these results reinforced confidence in strong AI chip demand. Investors, therefore, interpreted the data as a clear signal that orders for AI silicon remain resilient despite broader geopolitical uncertainty.
Strategic Deals Expand AI Reach
Meanwhile, Broadcom strengthened its position through major long-term agreements. Notably, it secured a partnership with Google to develop and supply custom Tensor Processing Units and networking components through 2031.
In particular, the deal includes the TPU v7, codenamed “Ironwood,” along with future generations built on advanced process technologies. As a result, this collaboration ensures a steady demand pipeline for AI infrastructure over several years.
At the same time, Broadcom expanded its collaboration with Google and Anthropic. Therefore, Anthropic will gain access to around 3.5 gigawatts of next-generation TPU-based compute capacity starting in 2027. Anthropic said the expansion “will power our frontier Claude models and help us serve extraordinary demand from customers worldwide”.
Growth Outlook and Expanding Backlog
Looking ahead, Broadcom approaches its upcoming shareholder meeting with strong momentum. The company reported first-quarter fiscal 2026 revenue of $19.3 billion, representing a 29% annual increase. Additionally, AI semiconductor revenue reached $8.4 billion, which reflects a 106% year-over-year surge.
Furthermore, CEO Hock Tan said AI revenue growth “is accelerating” and projected $10.7 billion in AI chip sales for the second quarter.
At the same time, the company holds an AI order backlog of $73 billion, scheduled for delivery over the next 18 months. Meanwhile, Google’s planned 2026 capital expenditure of $175 billion to $185 billion provides a direct and sustained demand pipeline.
