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Broadcom raises 2027 Google TPU shipment forecasts to 7.9 million units amid strong AI demand
Thursday, March 5, 2026 at 03:41 AM
Broadcom's outlook for Google TPU shipments has been revised upward, with projections reaching 7.9 million units by 2027, driven by high demand from external customers like Anthropic. The next-generation 'Pumafish' TPU could exceed an ASP of $20,000 due to design complexity. Additionally, Broadcom expects AI-related revenue to hit $110 billion in 2027, supported by the rollout of Tomahawk 7 networking chips and its lead over competitors like MediaTek in custom AI silicon.
Context
Broadcom has significantly raised its shipment forecasts for Google TPU units, now projecting 7.9 million units in 2027, up from previous estimates of 6 million. This surge is driven by aggressive external demand from AI labs like Anthropic, which recently committed to utilizing over one million TPUs and a gigawatt of compute capacity. As Google externalizes its custom silicon to third parties, Broadcom is emerging as the primary beneficiary, positioning its custom AI chips as a formidable alternative to Nvidia GPUs.
Technological leadership remains a key differentiator for Broadcom as it prepares the next-generation Pumafish TPU for 2027, which may command average selling prices exceeding $20,000 due to increased design complexity. While competitors like MediaTek trail in the custom silicon race, Broadcom is also scaling its AI networking business, with the Tomahawk 7 switch expected to double performance by 2027. This roadmap supports a massive revenue outlook, with AI-related sales projected to reach $110 billion by 2027 and $130 billion by 2028.
Sources (7)
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