---
title: "Google partners with MediaTek as short-term noise; Broadcom, \"standing in the light,\" is transitioning from the shadow of TPU to becoming a full-stack seller in the \"AI factory\" level"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290771848.md"
description: "Despite rumors that Google's TPU may shift to MediaTek, Broadcom's stock price actually rose slightly. Wall Street believes that Broadcom's core logic has transcended a single ASIC supply and is being reshaped into a full-stack platform company that encompasses custom AI chips, network infrastructure, and optical interconnect systems, termed an \"AI factory.\" This transformation from a \"shovel seller\" to a super infrastructure platform is key to supporting its high valuation and bull market logic"
datetime: "2026-06-25T03:52:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290771848.md)
  - [en](https://longbridge.com/en/news/290771848.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290771848.md)
---

# Google partners with MediaTek as short-term noise; Broadcom, "standing in the light," is transitioning from the shadow of TPU to becoming a full-stack seller in the "AI factory" level

According to the Zhitong Finance APP, during the trading hours of U.S. stocks on Wednesday, Broadcom (AVGO.US), one of the big winners in the global AI boom, became a market focus; previously, the well-known Wall Street investment firm Wedbush Securities made a key comment on a media report stating that Taiwan's chip design leader MediaTek may become the main collaborative design manufacturer for Google's Tensor Processing Unit (TPU), replacing Broadcom's long-standing partnership status as the TPU AI computing cluster collaborator.

Following the latest media report, Broadcom's stock price actually rose slightly by 0.51% by the close on Wednesday, after falling more than 3% on Tuesday amid a global chip stock plunge.

The rumor that Google TPU may turn to MediaTek indeed weakens the narrative of "Broadcom's irreplaceability in the custom ASIC market," as noted in Wedbush's recent comments. If the switch to Google's v9 TPU design is confirmed, it will suppress the market's perception of Broadcom's relative advantages over its peers and significantly enhance MediaTek's profit expectations for 2028. However, the expansion of clients such as OpenAI, Meta, and Anthropic is transforming Broadcom from a "leader in the Google TPU supply chain + AI ASIC leader" into a super-platform AI computing infrastructure company focused on "custom AI chips + network infrastructure + data center optical interconnect systems." This is also the core logic behind Wall Street's continued upward revision of Broadcom's target stock price.

## MediaTek Challenges Broadcom's AI ASIC Throne

"We do not comment on the accuracy of the information disclosed by the Commercial Times; however, if the news is true, we certainly believe that such a market landscape shift will have a significant impact on the AI ASIC semiconductor industry, as this outcome will present: 1) it will obviously significantly undermine the view that Broadcom, which has long held a dominant position in AI ASICs, has a superior position in the custom AI ASIC market compared to its peers; 2) it will bring significant upside potential to MediaTek's growth expectations for 2028, as its entry into Google's TPU production capacity seems to be accelerating," Wedbush analyst Matt Bryson wrote in a report to clients.

Google, Broadcom, and MediaTek did not immediately respond to media requests for comments.

Earlier this week, the Taiwan-based news media Commercial Times reported that Google may shift the design work for its next-generation cutting-edge TPU computing cluster to MediaTek by 2028, involving the soon-to-be-launched v9 TPU series products, also known as Triggerfish, which is the ninth generation TPU AI computing cluster. The news media added that Google initially intended to collaborate with Broadcom and use its 448G SERDES technology, but technical delays may have led to this change in partnership.

Google previously unveiled its eighth-generation TPU at the Google Cloud Next 2026 event held in Las Vegas in April In other TPU-related news, Google may use some of Samsung Electronics' advanced process foundry technology to manufacture high-performance memory input-output dies for its tenth-generation TPU, which will be launched in the coming years. This is partly due to the long-term capacity constraints of TSMC's (TSM.US) cutting-edge 3nm and below advanced chip processes.

## Broadcom Transitions from Google's TPU Shadow to a Full-Stack AI Computing Provider at the "AI Factory" Level

Broadcom has entered the largest incremental market for customized AI chips beyond NVIDIA GPUs, focusing on Google TPU (the TPU technology route is a typical AI ASIC chip) and self-developed AI ASIC accelerators from cloud giants like OpenAI/Anthropic. AI ASICs are undoubtedly the first core pillar for Broadcom's valuation and fundamental growth to shift upward. The strong financial reports recently released by Broadcom and Marvell are sufficient to demonstrate that the unprecedented strong growth logic of AI ASICs is being rapidly confirmed by "earnings report-level evidence." Broadcom expects AI chip sales to exceed $100 billion by 2027, and Q2 FY2026 AI semiconductor revenue is expected to reach $10.8 billion, a year-on-year increase of 143%, indicating that AI ASIC/XPU demand has become its core growth curve.

On the other hand, all GPU, TPU, and ASIC routes rely on high-speed Ethernet switching and optical interconnects. Broadcom's Tomahawk 6 has achieved a single-chip switching capacity of 102.4Tbps and showcased 102.4T Ethernet, CPO, 400G/lane optical DSP core devices, PCIe Gen6, and other AI interconnect solutions at OFC 2026, precisely addressing the bottleneck of AI data centers transitioning from "single-chip computing power" to "ten-thousand-card/hundred-thousand-card cluster efficiency."

The bottleneck of AI data centers is shifting from single-card computing power to cluster interconnect, east-west traffic, power efficiency, optical module power consumption, and network stability, which is precisely Broadcom's strategic territory. A single chip determines the upper limit of computing power, but the real efficiency of AI clusters at the scale of ten thousand cards, hundred thousand cards, or even gigawatt-level depends on whether sufficient bandwidth and low-power communication can occur between chips, within server racks of AI data centers, and across multiple data centers; this is the strategic value of Broadcom's Ethernet switching, CPO, optical DSP, and network silicon photonics technology routes.

Therefore, Broadcom's new round of strong bull market logic is not simply about "challenging NVIDIA," but rather about becoming a massive customized cloud AI inference computing resource provider at the "AI factory" level, as well as a supplier of data center optical interconnect systems and network infrastructure: benefiting from the cost reduction of self-developed ASICs by cloud vendors and the strong demand for optical interconnects, Ethernet switching, and data center network infrastructure driven by all types of AI computing clusters.

The most typical example is undoubtedly the core significance of the Jalapeño AI accelerator recently announced by OpenAI and Broadcom on Wednesday, which is not simply about "bypassing NVIDIA," but rather that cutting-edge model companies are beginning to extend computing power sovereignty from GPU procurement to a full-stack collaboration of "model—compiler—chip—network—data center optical interconnect." Jalapeño is positioned as OpenAI's first "Intelligence Processor" specifically designed for large language model inference, taking only nine months from design to tape-out. The engineering samples have been running machine learning workloads, including GPT-5.3-Codex-Spark, at target frequencies and power consumption; OpenAI and Broadcom claim its early performance per watt significantly surpasses current state-of-the-art levels, with plans to enter gigawatt-level deployments with data center partners like Microsoft starting at the end of 2026. An earlier 10GW collaboration framework also shows that OpenAI designs accelerators and systems, while Broadcom is responsible for implementation, Ethernet infrastructure expansion, and high-speed optical connection solutions within data centers, with deployments starting in the second half of 2026 and continuing until the end of 2029.

The expansion of clients such as OpenAI, Meta, and Anthropic is transforming Broadcom from a "Google TPU supply chain + AI ASIC leader" into a comprehensive provider of "AI ASIC custom AI chips + network infrastructure + data center optical interconnect systems," along with VMware's virtual cloud super-platform AI computing infrastructure company. This is also the core logic behind Wall Street's continued upward revision of Broadcom's target stock price. JP Morgan raised its target price from $500 to $580, BofA's target price is $530, Evercore's is $582, and HSBC even raised its target price to $600, with the core focus pointing to ASIC revenue growth and the large-scale expansion of multiple major clients in Broadcom's exclusive VMware virtual cloud, Ethernet infrastructure, data center optical interconnect/optical communication, and the DCI interconnect ecosystem among multiple data centers.

Broadcom's latest stock price is approximately $382.07, with a market capitalization of about $1.82 trillion. Data compiled from multiple investment research platforms shows that Wall Street's average target price for Broadcom roughly corresponds to a market capitalization of $2.23 trillion to $2.46 trillion; the most optimistic target price of $630 nearly corresponds to a $3 trillion market capitalization club. Among them, MarketBeat statistics show 32 analysts with an average target price of $493.24 and a high of $582; TipRanks reports 27 analysts over the past three months with an average target price of $516.91 and a high of $630; Zacks has 37 analysts with an average target price of $469.95 and a high of $630.

![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260625/1782358366136092.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The representative analyst giving the most optimistic target price of $630 is Tristan Gerra, a senior analyst at Robert W. Baird, whose core bullish logic focuses on three points: first, Broadcom's AI-related revenue guidance for 2026-2027 is stronger than market expectations and driven by multiple AI clients' volume growth; second, Broadcom has platform-level advantages in custom AI ASICs, Ethernet switch chips, and data center optical interconnects; Thirdly, VMware's software assets provide cash flow and profit margin support, making Broadcom not just an "AI chip resilient stock," but a composite AI infrastructure company of "AI ASIC + networking + data center optical interconnect + enterprise software cash flow."

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