“Broadcom's custom AI accelerator (XPU) business growing 90% Y/Y as Google TPU v6, Meta MTIA 2, and Apple AI chip designs enter volume production. Each XPU is a large-die chip requiring CoWoS advanced packaging and HBM integration — Broadcom is TSMC's second-largest CoWoS customer after NVIDIA. Management guided XPU revenue to reach $4B in Q3 FY26.”

“Broadcom Tomahawk 5 (51.2 Tbps) AI switch ASIC entering hyperscaler deployments. Networking silicon +38% Y/Y — every AI cluster requires hundreds of Tomahawk switches for the GPU fabric. Broadcom dominates AI data center switching silicon with 70%+ market share. Jericho3-AI routing chip also shipping to cloud operators.”

“Broadcom co-packaged optics (CPO) platform advancing with 1.6T switching ASICs. Broadcom is integrating silicon photonics directly onto Tomahawk 6 switching silicon — eliminating external transceivers. First CPO-integrated switch ASICs in customer qualification at two Tier-1 hyperscalers targeting 2027 deployment.”

“Three confirmed hyperscaler XPU customers (Google, Meta, Apple) each developing next-generation custom AI ASICs with Broadcom. Each next-gen XPU uses more HBM than the prior generation. Broadcom's XPU roadmap is a direct demand signal for HBM supply — a single Google TPU v7 tape-out represents billions in downstream HBM orders.”

“VMware infrastructure software (acquired 2023) generating $5.5B/quarter in recurring revenue with 70%+ gross margins. While not a component play, VMware's subscription conversion is funding Broadcom's aggressive XPU and networking silicon R&D. The software cash flow gives Broadcom pricing flexibility that pure-play semiconductor companies lack.”