THE APEX TIMES
Broadcom’s Q2 AI surge meets a provocative Mizuho TPU forecast aimed at 2028
A Wall Street outlook tying Google TPU buildouts to Broadcom’s custom chips has refocused attention on the company’s rapid AI revenue growth after its fiscal Q2 results.
Broadcom Inc. (NASDAQ: AVGO) reported record fiscal second-quarter results on June 3, with total revenue rising 48% year over year to $22.2 billion and artificial-intelligence related semiconductor revenue jumping 143% to $10.8 billion. The update underscored Broadcom’s growing role supplying specialized silicon and infrastructure components to hyperscale AI data centers, even as the market appears to be debating how fast near-term expectations can be sustained.
In its quarterly outlook, Broadcom guided consolidated third-quarter revenue of approximately $29.4 billion, an 84% year-over-year increase, while also projecting continued expansion in AI semiconductor demand. Chief executive Hock Tan said momentum was driven by growing demand for custom AI accelerators and AI networking, and management expected Q3 semiconductor revenue from AI to grow to $16.0 billion, which would be more than 200% higher than the prior year period.
The new focus comes from a separate argument made by Mizuho, as relayed by 24/7 Wall St., that growth in Google tensor processing unit, or TPU, deployments could create a far larger revenue runway for Broadcom through 2028. TPUs are Google-designed AI chips optimized for accelerating machine-learning workloads, and their mass deployment tends to require a supply chain that includes networking, packaging, and application-specific silicon partners.
According to the Mizuho view summarized in the 24/7 Wall St. piece, TPU-related opportunities could scale to more than 35 million units by 2028 as hyperscalers build out capacity. The note also framed a scenario where Broadcom’s annual AI revenue could rise above $100 billion by 2028, alongside a cumulative opportunity labeled at more than half a trillion dollars, depending on market share assumptions and revenue-per-gigawatt estimates. Those are forecasts, not commitments, and Broadcom did not endorse those specific multi-year figures in its earnings release.
The TPU thesis aligns with how Broadcom describes its positioning across semiconductor solutions. Rather than chasing the general-purpose GPU market, Broadcom has been building customized chip designs and supporting infrastructure that can be tuned to specific AI systems. In the 24/7 Wall St. summary, this custom ASIC approach, where ASIC stands for application-specific integrated circuit, is presented as a way to win repeat deployments tied to large AI platforms.
Recent reporting also points to Broadcom’s involvement in TPU supply chains beyond just chip design. Tom’s Hardware reported that Broadcom agreed to supply Anthropic with roughly 3.5 gigawatts of Google TPU capacity starting in 2027, and that Broadcom’s role includes providing networking and other components for next-generation AI racks, alongside a longer-term collaboration arrangement. It also described Broadcom as a silicon implementation partner that helps convert Google’s TPU architecture into a manufacturable ASIC layout.
Even with the strong Q2 print, the gap between corporate guidance and long-dated analyst scenarios is where the uncertainty remains. Broadcom’s public numbers in the quarter emphasize near-term direction, including Q3 revenue guidance and the expectation for AI semiconductor revenue growth, but it did not provide detailed 2028 commitments or TPU unit forecasts in the materials reviewed here. The Mizuho math, as summarized, should therefore be treated as a directional model for what could happen if hyperscaler capex and TPU ramp schedules follow through.
Why It Matters
- Broadcom’s results show AI-linked revenue is already moving fast, but the market’s debate may increasingly hinge on whether AI chip supply chains can scale on a similar timeline through 2028.
- TPU buildouts are not just a chip story, they also depend on networking, packaging, and system integration partners, which can change how revenue is distributed across the supply chain.
- Custom ASIC and infrastructure silicon can look more “stickier” than general-purpose components if hyperscalers keep platform designs stable across generations, but that stickiness is still dependent on adoption and competition.
- Near-term guidance and longer-dated analyst models can diverge, so investors will likely watch whether Broadcom’s AI growth rate continues to match the expectations implied by TPU ramp scenarios.
Sources
- 24/7 Wall St.: Why Mizuho’s Explosive TPU Forecast Makes Broadcom a Potential Multi-Bagger by 2028
- Broadcom Investor Relations: Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend (HTML)
- Broadcom Investor Relations: Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend (PDF)
- Tom’s Hardware: Broadcom to supply Anthropic with 3.5 gigawatts of Google TPU capacity from 2027
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Key Facts
- Broadcom fiscal Q2 2026 revenue rose 48% year over year to $22.2 billion, with AI semiconductor revenue up 143% to $10.8 billion.
- Broadcom guided fiscal Q3 2026 revenue of about $29.4 billion, and projected AI semiconductor revenue to reach $16.0 billion, up more than 200% year over year.
- The 24/7 Wall St. summary of a Mizuho note projects TPU-related scaling that could exceed 35 million units by 2028.
- That same outlook suggests Broadcom’s annual AI revenue could rise above $100 billion by 2028 under certain assumptions, and frames a multi-year cumulative opportunity in the hundreds of billions.
- Tom’s Hardware reported Broadcom supply agreements and a role in providing networking and components for TPU-based AI racks, including an Anthropic arrangement tied to gigawatt-scale capacity starting in 2027.
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