Broadcom's Long-Term Google TPU Deal Through 2031 Drives 12% Stock Rally Amid AI Infrastructure Competition

Broadcom's five-year agreement to develop and supply custom Tensor Processing Units for Google through 2031, along with networking components for AI racks, has driven the stock up 12% over the past week to $350.63. The deal provides multi-year revenue visibility as Broadcom targets exceeding $100 billion in AI sales by 2027, with Q1 AI semiconductor revenue already hitting $8.4 billion (up 106% year-over-year). Analysts view the agreement as validation that AI infrastructure demand can sustain multiple winners beyond Nvidia, with Google's custom TPUs creating a competitive alternative for specific AI workloads.