This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO), the semiconductor and infrastructure-software powerhouse, rebounded approximately 0.4% to $363.93 Thursday afternoon after getting hammered 4.6% Wednesday. The bounce matters. Investors are starting to separate Google’s (NASDAQ:GOOG) decision to add another chip partner from the much biggerand far less dramaticquestion of whether Broadcom is actually losing its existing TPU empire.
The headline number looks enormous. Marvell could receive warrants tied to roughly $120 billion of qualifying Google purchases through fiscal 2033. But that is a vesting threshold, not a guaranteed order book. Broadcom still holds a separate agreement covering future Google chips and rack systems through 2031. Google is building a second lane, but Broadcom remains firmly on the highway.
The AI prize is also expanding too quickly for this to become a simple winner-takes-all fight. Broadcom’s fiscal second-quarter AI semiconductor revenue exploded 143% to $10.8 billion, nearly half of total sales.
At $363.93, the stock trades 6.13% above its $342.90 GF Value estimate, showing that plenty of AI optimism is already baked into the price. Marvell may squeeze Broadcom’s exclusivity and strengthen Google’s bargaining power, but it has not ripped out Broadcom’s deeply embedded engineering advantage.
