US Stock Market Move | Broadcom Inc. (AVGO.US) opened up nearly 4%, will supply TPU chips for Alphabet Inc. Class C, and provide computing power for Anthropic.

On Tuesday, Broadcom Inc. (AVGO.US) opened nearly 4% higher at $324.48. In terms of news, according to regulatory filings submitted to the SEC by Broadcom Inc. on Monday, the company has agreed to produce future versions of artificial intelligence chips for Alphabet Inc. Class C. They have also signed an expanded agreement with Anthropic, allowing Anthropic to access about 3.5 gigawatts of computing power based on Alphabet Inc. Class C's AI processor. Under this new long-term agreement, Broadcom Inc. will design and supply customized tensor processing units (TPUs) for Alphabet Inc. Class C for their next generation AI accelerator. They will also provide network equipment and related components for Alphabet Inc. Class C's new AI data center, with the collaboration lasting until 2031. Additionally, Broadcom Inc., Alphabet Inc. Class C, and Anthropic have further deepened their strategic partnership. Starting from 2027, Anthropic will obtain about 3.5 gigawatts of next-generation TPU-based AI computing power through Broadcom Inc., as part of their multi-gigawatt expansion plan. Following the earnings conference call, a report by a team led by Mizuho Securities analyst Vijay Rakesh estimated that Broadcom Inc. will generate $21 billion in AI-related revenue from Anthropic in 2026, reaching $42 billion in 2027.