Broadcom Ships 2nm SoC on 3.5D XDSiP Platform, Shares Outperform Upgrade
Broadcom began shipping the industry’s first 2nm compute SoC on its 3.5D XDSiP platform on February 26, enabling modular scaling for AI clusters. Wolfe Research upgraded shares to Outperform with a $400 target, citing plans to ship 7 million TPUs by 2028 and boost AI revenue to $18 EPS.
1. Launch of 2nm Compute SoC
On February 26, Broadcom began shipping the industry’s first 2nm custom compute SoC built on its 3.5D XDSiP platform. The design combines 2.5D and 3D-IC integration in a modular die-stacking approach and supports independent scaling of compute, memory and I/O for high-density AI clusters.
2. Outperform Upgrade and Growth Forecasts
Wolfe Research raised its rating on Broadcom shares to Outperform with a $400 price target, citing plans to ship 7 million tensor processing units by 2028. The firm forecasts AI revenue will grow to support $18 in EPS by 2027 under its bullish scenario.
3. Strategic Implications for AI Infrastructure
The introduction of a 2nm SoC platform accelerates Broadcom’s positioning in next-generation XPU markets, enabling lower power consumption and higher signal density. This technological edge could strengthen its competitive stance against rivals in gigawatt-scale AI deployments.