Broadcom Extends Multi-Gigawatt Meta AI Partnership, Lifts Q2 Guidance to $22B
Broadcom extended its multi-generation partnership with Meta through 2029, committing over 1GW of custom MTIA AI accelerator silicon and high-speed Ethernet networking for multi-gigawatt data center rollouts. The company also raised Q2 revenue guidance to $22 billion, beat estimates, and forecasts AI chip sales exceeding $100 billion by 2027.
1. Strategic Partnership Expansion
Broadcom and Meta announced an extension of their strategic collaboration through 2029, with Broadcom supplying the backbone for Meta’s custom MTIA AI accelerator chips. The initial phase commits over 1GW of silicon capacity and integrates Broadcom’s XPU platform with high-radix Ethernet switches, optical connectivity, PCIe switches and SerDes technology to eliminate network bottlenecks in multi-gigawatt AI data centers.
2. Q2 Guidance and Market Response
Broadcom raised its Q2 revenue guidance to $22 billion, surpassing consensus of $20.68 billion, and projected AI chip sales above $100 billion by 2027. Despite the beat, shares edged lower on overbought RSI readings of 73, though several analysts lifted price targets, citing sustained AI momentum and expanded infrastructure contracts.