After communicating with the CEO and CFO of Broadcom, UBS maintained the company's “buy” rating and target price of 470 US dollars, and believes that there is still room for a clear increase in the AI revenue guidance previously given by Broadcom for the 2027-2028 fiscal year. UBS pointed out that market concerns about Broadcom's flagship TPU project have been exaggerated. After the company launched v8i in 2027, customer participation in the next two XPU projects is still very high. At the same time, the new generation of chips will integrate more SRAM and ARM CPU cores for scheduling and management. The system complexity will further increase, and it will also make it more difficult for customers to design similar chips themselves. For the first cutting-edge AI lab customer to purchase TPU, Broadcom stated that it will not directly provide financing, but will only help build a platform involving third-party lenders, and will only provide residual value guarantees for a small portion of the financing hierarchy. As a result, UBS kept its profit forecast unchanged and continued to give a target price of $470 based on future free cash flow from the software business and semiconductor business.

After communicating with the CEO and CFO of Broadcom, UBS maintained the company's “buy” rating and target price of 470 US dollars, and believes that there is still room for a clear increase in the AI revenue guidance previously given by Broadcom for the 2027-2028 fiscal year. UBS pointed out that market concerns about Broadcom's flagship TPU project have been exaggerated. After the company launched v8i in 2027, customer participation in the next two XPU projects is still very high. At the same time, the new generation of chips will integrate more SRAM and ARM CPU cores for scheduling and management. The system complexity will further increase, and it will also make it more difficult for customers to design similar chips themselves. For the first cutting-edge AI lab customer to purchase TPU, Broadcom stated that it will not directly provide financing, but will only help build a platform involving third-party lenders, and will only provide residual value guarantees for a small portion of the financing hierarchy. As a result, UBS kept its profit forecast unchanged and continued to give a target price of $470 based on future free cash flow from the software business and semiconductor business.