JP Insights discusses confidence in Broadcom despite recent stock declines, citing Q3 AI semiconductor revenue of $16.7B (up 221% YoY) and management guidance of $21.7B for Q4. The analyst argues that strong free cash flow, secured customer supply agreements, and growing AI workload economics support long-term growth, and that competition from Marvell need not proportionally harm Broadcom's expanding market opportunity.
Broadcom reported Q3 earnings that beat analyst expectations, but investors focused on a weaker forward guidance. More significantly, the company announced that Anthropic, maker of the Claude AI model, is on track to become its largest customer by 2027, surpassing Google, with purchases of Ironwood TPU chips expected to grow from 1 gigawatt in 2026 to 5 gigawatts in 2027.
Gherkin Labs reverse engineered Google's TPU communication protocol and built a simulator that runs unmodified TPU software, enabling cycle-level performance tracing without access to actual hardware. The simulator, deployed as a shared library, decodes instruction streams and simulates tensor and sparse cores on CPU, addressing the lack of public TPU documentation to improve ML efficiency and enable better kernel optimization.
Google Cloud CEO Thomas Kurian reported accelerating customer acquisition and large deal growth at the Goldman Sachs Communacopia conference, highlighting custom silicon advantages, sub-2-year AI server payback periods, and expanding TPU monetization through on-premise sales. A hobbyist built an integrated home data center using Dell workstations, GPU systems, and NAS storage for potential revenue-generating AI and compute workloads.