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Broadcom Signals Anthropic to Overtake Alphabet as Top AI Chip Customer
By Drooid · · How we work
Core Event: Broadcom Announces Anthropic as Fast-Growing AI Chip Buyer
In early September, Broadcom (AVGO) released its fiscal 2026 third-quarter results for the period that ended May 2. The company posted non-GAAP earnings per share of $3.32 on revenue of $29.59 billion, both beating average Wall Street analyst targets of $3.24 EPS and $29.36 billion sales. Despite the beat, the stock slipped because the forecasted quarter-ahead sales of $34.8 billion fell short of the $35.03 billion average estimate. In the earnings call, Broadcom highlighted that sales to Anthropic are on track to surpass those to Alphabet’s Google division, positioning Anthropic as the next largest purchaser of its custom AI processors.
Background & Context: AI Chip Market and Existing Customer Base
Broadcom’s AI hardware portfolio includes the Ironwood Tensor Processing Unit (TPU) line, originally co-designed with Alphabet, and the newer Jalapeno XPU chips. Alphabet remains Broadcom’s current top customer, but the company is already shipping Ironwood TPUs to both Alphabet and Anthropic. Anthropic, the creator of the Claude model, is slated for an initial public offering later this year and is rapidly scaling its AI workloads, prompting a surge in chip demand.
Data & Statistics: Revenue, Forecasts, and Chip Shipment Projections
- Q3 revenue: $29.59 billion; EPS: $3.32 (vs. analyst targets $29.36 billion and $3.24).
- Forecast sales for the current quarter: $34.8 billion (analyst target $35.03 billion).
- Ironwood TPU version 8i shipments to Anthropic projected to rise from 1 gigawatt in 2026 to 5 gigawatts in 2027.
- Jalapeno XPU shipments to OpenAI projected to increase from 1.3 gigawatts in 2027 to 5 gigawatts in 2028.
- Adjusted EPS outlook for fiscal 2028: > $30, compared with the average estimate of $25.
Official Statements & Responses: Broadcom’s Outlook on Customer Mix
Broadcom indicated that Anthropic is expected to become the largest buyer of its XPU hardware in 2027, overtaking Alphabet’s current lead. The company emphasized that the growth in Anthropic orders reflects broader demand for custom AI processors and does not imply reduced spending by existing top customers. Broadcom also reiterated confidence in its diversified AI-chip portfolio, citing strong interest from multiple leading AI developers.
Why It Matters: Implications for AI Infrastructure and Broadcom’s Market Position
If Anthropic’s purchases materialize as projected, Broadcom will deepen its foothold in the AI compute stack, complementing its networking chips that support data-center GPUs such as Nvidia’s. A more balanced sales mix among Alphabet, Anthropic, and OpenAI could reduce reliance on any single client and reinforce Broadcom’s reputation as a “pick-and-shovel” supplier for the expanding AI infrastructure ecosystem.