--- title: "BOCI: Google's Direct HBM Procurement Weakens Broadcom Inc. Role; Advanced Micro Devices, Inc. Has Upside Room for Next Year's Data Center Sales Guidance" type: "News" locale: "en" url: "https://longbridge.com/en/news/300404573.md" description: "BOCI maintains a Neutral rating on the semiconductor sector, citing Google's direct HBM procurement weakening Broadcom's role. AMD is rated Hold with a raised target price of $520, reflecting upside potential in 2027 data center sales despite valuation risks. TSMC remains the top pick for wafer foundries due to strong AI demand and leading technology, followed by Hua Hong Grace and SMIC. Intel faces competitive pressure from aggressive capex and new lithography equipment." datetime: "2026-09-29T08:40:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/300404573.md) - [en](https://longbridge.com/en/news/300404573.md) - [zh-HK](https://longbridge.com/zh-HK/news/300404573.md) generator: "portal-rs" --- # BOCI: Google's Direct HBM Procurement Weakens Broadcom Inc. Role; Advanced Micro Devices, Inc. Has Upside Room for Next Year's Data Center Sales Guidance BOCI issued a research report maintaining a Neutral rating on the semiconductor sector. It said Google under Alphabet Inc. (GOOGL.US) is expanding direct procurement of HBM, reflecting the rising semi-COT (customer-owned tooling) model and weakening the role of Broadcom Inc. (AVGO.US) as a full-service supplier. The broker also believes Advanced Micro Devices, Inc. (AMD.US) has upside potential in its 2027 data center sales guidance, although crowded positioning, expensive valuation and reliance on external components pose risks. Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) is still unlikely to see its leading position in advanced process technology challenged in the medium term. However, Intel Corporation (INTC.US) turning more aggressive in capital expenditure and introducing next-generation High-NA EUV lithography equipment into high-volume manufacturing and specific process layers will increase competitive concerns. BOCI said feedback on Google's TPU supply chain remains positive, with total shipments next year expected to more than double YoY to over 8 million units. Broadcom Inc. (AVGO.US) remains the major supplier, but MediaTek's contribution is expected to rise rapidly, with the sales mix between the two projected at around 80:20 in 2027 versus about 95:5 in 2026. Google's active direct procurement of HBM and re-hosting to design service partners is unfavorable to Broadcom Inc. (AVGO.US) , which still relies heavily on Google. The broker reiterated its Hold rating on Broadcom Inc. (AVGO.US) with a TP of USD450. The broker said Meta's launch of Muse boosted sentiment for agentic AI-related CPU trading, lifting share prices of both the x86 camp (Advanced Micro Devices, Inc. (AMD.US) /Intel Corporation (INTC.US) ) and ARM camp (Qualcomm, Arm and others). Shipments of Advanced Micro Devices, Inc. (AMD.US) 's Helios racks depend not only on its own products and execution, but also on external components such as Broadcom Inc. (AVGO.US) 's network switches. However, over the next six to nine months, Advanced Micro Devices, Inc. (AMD.US) is still expected to benefit from the delay of Intel Corporation (INTC.US) 's next-generation 18A Diamond Rapids launch to 2Q27. Demand for Venice EPYC based on Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) 's N2 process remains strong, and Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) is coordinating backend packaging and testing to take overflow orders. The broker gave a Buy rating to ASE Technology Holding, whose Venice full-stack FOCoS capacity is already fully utilized. BOCI believes Advanced Micro Devices, Inc. (AMD.US) has a high chance of exceeding its 2027 data center sales guidance, including 70% YoY growth in server CPU and over 100% YoY growth in AI/GPU, though it remains a crowded long position. The broker reiterated its Hold rating and raised the TP from USD475 to USD520, equivalent to around 30x 2027 earnings. BOCI is positive on wafer foundry fundamentals, with AI-related demand spanning all process nodes. It covers HUA HONG GRACE (01347.HK) +1.400 (+1.330%) Short selling $182.56M; Ratio 22.470% and SMIC (00981.HK) 0.000 (0.000%) Short selling $198.39M; Ratio 19.221% . Compared with SMIC (00981.HK) 0.000 (0.000%) Short selling $198.39M; Ratio 19.221% , HUA HONG GRACE (01347.HK) +1.400 (+1.330%) Short selling $182.56M; Ratio 22.470% has greater exposure to AI power analog applications, a better gross margin expansion trajectory, and optionality for injecting more advanced assets from Huali Microelectronics. The broker's top pick in the wafer foundry sector is Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) , followed by HUA HONG GRACE (01347.HK) +1.400 (+1.330%) Short selling $182.56M; Ratio 22.470% H shares and then SMIC (00981.HK) 0.000 (0.000%) Short selling $198.39M; Ratio 19.221% H shares. (da/ad)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-29 12:25.) 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