# Broadcom Posts AI Chip Momentum, Wall Street Bullish > Source: > Published: 2026-07-09 17:18:43+00:00 # Broadcom Posts AI Chip Momentum, Wall Street Bullish For AI infrastructure teams and ML engineers, vendor-level commitments from hyperscalers and major model providers materially influence accelerator design decisions and procurement cycles. According to InsiderMonkey, Jefferies analyst Blayne Curtis on June 30 reiterated a Buy rating and a $550 price target on Broadcom, citing an improving outlook for the company's AI chip business. InsiderMonkey reports Jefferies ran a scenario analysis that projects fiscal 2028 earnings per share of between $30 and $40. The article also reports a long-term agreement with Google that extends through 2031 and cites potential upside of more than $500 billion under that deal, and highlights a reported Broadcom partnership with OpenAI that produced the Jalapeno custom accelerator for LLM inference. The original RSS description notes Whale Rock Capital Management lists Broadcom among top stocks to buy. ### Editorial analysis For engineering and procurement teams, vendor tie-ups and long-duration contracts from hyperscalers shape which custom accelerators see production scale and third-party ecosystem support. That pattern matters for performance portability, software stack investment, and benchmarking priorities. ### What happened According to InsiderMonkey, Jefferies analyst **Blayne Curtis** on June 30 reiterated a Buy rating and a **$550** price target on **Broadcom**. InsiderMonkey reports Jefferies ran a scenario analysis that points to fiscal 2028 earnings per share of **$30 to $40**, which the article says implies a valuation multiple of roughly 10 times earnings. InsiderMonkey further reports that the company has an on-track roadmap for custom Tensor Processing Units co-designed with **Google**, and that the partnership now extends through **2031** under a long-term agreement the article characterises as guaranteeing minimum revenue and offering potential upside of more than **$500 billion**. The article also highlights a reported partnership with **OpenAI** that produced the **Jalapeno** custom accelerator for LLM inference and notes a broadening customer base for application-specific integrated circuits (**ASICs**). The original RSS description cites **Whale Rock Capital Management** listing Broadcom among top stocks to buy. ### Industry context Companies co-designing accelerators with hyperscalers typically aim to lock in demand and achieve scale economics, which reduces per-unit cost for large cloud customers while raising integration and software-compatibility burdens for third parties. Observed patterns in comparable supplier-hyperscaler relationships include long validation cycles, tight firmware/tooling coupling, and multi-year volume commitments that affect supply planning for OEMs and datacenter operators. ### What to watch - •Announced technical specs or published benchmarks for **Jalapeno** that clarify inference performance and memory/configuration trade-offs. - •Any public contract disclosures or filings that quantify minimum revenue commitments under the reported Google agreement. - •Shifts in Broadcom's customer concentration metrics or disclosed ASIC wins beyond Google and OpenAI. ### Reported-source note All reported events and numeric projections above are drawn from the InsiderMonkey article and the original RSS description; where the article cites Jefferies, figures and quotations are attributed to Jefferies via InsiderMonkey. Broadcom has not been quoted in the sourced coverage included here. ## Key Points - 1Long-term hyperscaler co-design agreements frequently underpin scale economics for custom accelerators, affecting procurement and software compatibility. - 2Analyst scenario EPS ranges and high price targets reflect market expectations tied to contracted minimum revenues with large cloud providers. - 3New custom accelerators for LLM inference shift the competitive landscape from general-purpose GPUs toward application-specific ASICs and tooling lock-in. ## Scoring Rationale The story matters to AI/DS practitioners because multi-year hyperscaler contracts and custom accelerators affect hardware availability, cost per inference, and the software layers teams must support. It is a notable infrastructure development rather than a frontier-model release. ## Sources Public references used for this report. Practice with real Ad Tech data 90 SQL & Python problems · 15 industry datasets [Active Search Campaigns by BudgetEasy](/problems/sql/active-search-campaigns-by-budget) [High CPC Clicks & Poor Landing PagesMedium](/problems/sql/high-cpc-clicks-poor-landing-page) [Campaign ROAS by Attribution ModelHard](/problems/sql/campaign-roas-by-attribution-model) 250 free problems · No credit card [See all Ad Tech problems](/problems/datasets/adtech)