Broadcom Extends Meta AI Chip Partnership to 2029 with $100B Upside
Broadcom extended its AI chip collaboration with Meta through 2029 under a multi-year, multi-generation partnership to scale Meta Training and Inference Accelerator chips. Two expanded AI deals this month underpin a conservative $100 billion revenue projection for its ASIC business, though valuation concerns prompted an analyst downgrade to Buy.
1. Expanded Meta Partnership Through 2029
Broadcom and Meta agreed a multi-year, multi-generation collaboration running through 2029 to co-develop and deploy Meta Training and Inference Accelerator (MTIA) chips across Meta's data centers, aiming to boost AI compute scalability and performance.
2. $100B AI Chip Revenue Projection
Two recently announced expansions of Broadcom’s AI chip agreements underpin a conservative $100 billion revenue projection for its ASIC business, driven by rising demand for bespoke AI accelerators in hyperscale cloud and enterprise deployments.
3. Analyst Downgrade Reflects Valuation Concerns
An analyst downgraded Broadcom from Strong Buy to Buy, citing stretched valuation after a significant stock run, while acknowledging the strength of its expanding AI partnerships and the company’s structural customer lock-in.