ARK Buys $7.9M Broadcom Stock, UBS Sees AI Revenue Hitting $60B in FY26
Cathie Wood’s ARK Innovation ETF acquired 24,205 Broadcom shares valued at $7.87 million after divesting $13.7 million in Teradyne stock. UBS projects Broadcom will ship 3.7 million TPUs in 2026 rising to over 5 million in 2027 and forecasts AI revenue of $60 billion in FY2026, $106 billion in FY2027 and $150 billion by FY2028.
1. ARK's Share Acquisition
On February 17, Cathie Wood’s ARK Innovation ETF added 24,205 Broadcom shares, representing a $7.87 million investment following a $13.7 million sale of Teradyne stock.
2. UBS Rating and Price Target
UBS analyst Timothy Arcuri reiterated a Buy rating and maintained a $475 price target, highlighting accelerating demand for Broadcom’s custom AI chips and Tensor Processing Units.
3. TPU Shipments Outlook
UBS forecasts Broadcom will ship approximately 3.7 million TPU units in calendar year 2026, increasing to over 5 million units in 2027, with the TPU v7 model comprising more than half of 2027 volume and v8ax leading 2028 shipments.
4. AI Revenue Growth Projections
Based on shipment trends, Broadcom’s AI revenue is projected to reach $60 billion in fiscal 2026—a 200% year-over-year increase—rising to $106 billion in fiscal 2027 (80% growth) and approximately $150 billion by fiscal 2028.