Following a media report that suggests Google (GOOGL) is “mulling” insourcing AI chips called TPU that it currently buys from Broadcom (AVGO), potentially as early as 2027, BofA said “this appears to be more contract negotiation rather than major threat” to Broadcom’s technical expertise. The firm, which argues that replacing Broadcom’s key SerDes IP could prove tough and a key reason Google has consistently partnered with the company since 2016, also notes that similar contractual negotiation played out in media earlier this year between Broadcom and Apple (AAPL) and eventually resulted in a multi-year contract renewal. BofA keeps a Buy rating and $1,050 price target on Broadcom shares.
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