Broadcom's Critical Role in AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Should l Buy GOOG?
Source: Yahoo Finance
- Optimistic AI Order Outlook: Broadcom's management highlighted expectations of over $100 billion in AI chip orders for Fiscal 2027, supported by approximately 9-10 gigawatts of capacity, indicating strong demand across multiple major customers and enhancing its market position.
- Importance of Networking Business: Products like Broadcom's Tomahawk switches and high-end SerDes are becoming integral to the core architecture of AI systems, playing a crucial role in ensuring efficient data flow within complex AI clusters, despite lower market attention.
- Stability from Software Business: Broadcom's infrastructure software segment, particularly VMware, provides recurring revenue and solid margins, offering a second growth leg beyond AI hardware, thus enhancing financial stability amid evolving AI workloads.
- Strong Market Consensus: According to TipRanks, Broadcom holds a “Strong Buy” consensus rating with 27 buy ratings, and an average price target of $471.74 implies a 47.9% upside from the recent share price of $318.81, reflecting strong market confidence in its future performance.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cloud Giants' Investments: Alphabet and Microsoft are seeing significant returns on their cloud computing investments, with Azure and Google Cloud revenues growing 39% and 48% year-over-year, respectively; despite both stocks being down over 20%, their investment value remains intact.
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See More
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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, driven by its custom chips that enhance cost performance for AI applications, attracting numerous developers.
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