The close to $2 trillion company is taking a central role in Alphabet Inc (NASDAQ: GOOGL) Google’s next-generation AI chip rollout as it moves to lock in high-bandwidth memory (HBM) supplies from Samsung Electronics Co, Ltd (OTC: SSNLF).
Industry sources say Broadcom CEO Hock Tan traveled to South Korea this week to finalize Samsung’s HBM4 supply agreement, a critical step because Broadcom oversees the design and production of Google’s Tensor Processing Unit (TPU).
Samsung HBM Supply Negotiations and Contract Scope
Broadcom reportedly pushed for a supply commitment through 2028, but Samsung agreed only to next year’s volume, the Chosun Daily reported Thursday.
Even so, the deal is substantial. Samsung’s contract with Broadcom represents roughly half of Samsung’s annual HBM production capacity, including both the 5th-generation HBM3E for Google’s 7th-generation TPU and the 6th-generation HBM4 for next year’s 8th-generation TPU.
Broadcom’s growing role comes as Google’s TPU demand accelerates rapidly. Since the launch of Google’s “Gemini 3” AI model, the market, once dominated by Nvidia Corp (NASDAQ: NVDA) Graphics Processing Units (GPUs), has begun shifting toward TPUs.
Surging TPU Demand Creates Multi-Year Tailwind
Wall Street now expects Google’s TPU shipments to jump from 1.5–2 million units this year to 8–9 million by 2028, a more than fivefold increase, giving Broadcom a major opportunity.
Broadcom also sought more HBM volume from Samsung.
Broadcom carries a consensus price forecast of $370.68 from 28 analysts. Oppenheimer, Susquehanna, and Morgan Stanley issued the three most recent ratings, and their average price forecast of $442.67 implies a ~15% upside for Broadcom.
On Friday, Oppenheimer analyst Rick Schafer maintained Broadcom with an Outperform and raised the price forecast from $400 to $435, citing upside from next-gen Tomahawk6 chip volumes ramp in the second half of next year.
On Monday, Morgan Stanley analyst Joseph Moore maintained Broadcom with an Overweight and raised the price forecast from $409 to $443.
The analyst expects Broadcom to outpace Nvidia in AI processor revenue growth in 2026 because of supply constraints.