UBS Reaffirms Bullish AI Path for Broadcom as Shares Whipsaw

Overview

• UBS kept a Buy rating with a $475 price target, pointing to accelerating demand for custom AI chips and stronger visibility on ASIC programs.
• UBS projects more than 5 million TPU units in 2027, up from an estimated 3.7 million in 2026, with v7 parts leading before v8ax takes over on TSMC’s N3 process in 2028.
• The firm forecasts AI revenue of about $60 billion in fiscal 2026, roughly $106 billion in 2027, and near $150 billion in 2028, and expects shipments of OpenAI’s ASIC late 2026 and Anthropic’s in the second half of 2027.
• Broadcom introduced what it calls the industry’s first Wi‑Fi 8 access point and switch for AI‑ready enterprise networks, featuring the BCM49438 APU for edge AI and the Trident X3+ switch with MACsec and advanced telemetry.
• Forbes highlights stretched valuation and volatility, with shares around $340 after a dip below $300 and rebound above $350, alongside concerns over VMware integration despite a targeted $8.5 billion EBITDA contribution and a $16 billion cash cushion.