Bank of America on Monday raised its price objective on Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) to $460 from $400, citing growing leverage from Google’s tensor processing units (TPUs) and expectations for higher unit volumes and average selling prices over the next two years.
The brokerage reiterated its “Buy” rating, saying Broadcom stands to benefit as Google ramps production of its TPUv7 chips and prepares for broader external access to the hardware used to train large artificial intelligence models.
According to the investment bank, Google’s move to train its Gemini 3 model entirely on TPUs, along with the potential to rent the chips to outside customers, supports a scenario in which Broadcom’s TPU-related shipments could rise from about two million units in 2025 to more than three million in 2026. ASPs could also climb from roughly $5,000 to $6,000 today to as high as $12,000 to $15,000 next year, the firm added.
Broadcom’s earnings estimates were largely unchanged, with the bank trimming margin assumptions due to a higher mix of compute and ASIC products.
Analysts highlighted that Google’s current TPUv7 can outperform Nvidia’s latest GB300 in power efficiency for certain workloads such as FP8 large language model training, though Bank of America cautioned that real-world performance depends on software support and workload types. Nvidia’s upcoming “Vera Rubin” platform, due in the second half of 2026, could also narrow TPU advantages, it said.
Analysts flagged several risks, including the possibility that Google could begin selling TPUs directly rather than only through its cloud platform, a shift that could introduce new competition for Broadcom’s other custom silicon customers. The bank also noted that MediaTek may join as a design partner for the next-generation TPUv8, potentially reducing Broadcom’s share of future projects.