Broadcom Inc (NASDAQ:AVGO) shares rose nearly 4% in premarket trading on Tuesday after the company revealed major long-term agreements with Google (NASDAQ:GOOGL). A regulatory filing released Monday outlined an expanded partnership focused on developing custom silicon and networking infrastructure for artificial intelligence systems over the coming years.
As part of the new arrangements, the two companies signed a “Long Term Agreement for Broadcom to develop and supply custom Tensor Processing Units (“TPUs”) for Google’s future generations of TPUs.” The agreement reinforces Broadcom’s position as the main design partner behind the specialized processors used to power Google’s most advanced AI models.
The collaboration also includes a “Supply Assurance Agreement for Broadcom to supply networking and other components to be used in Google’s next-generation AI racks through up to 2031.” These systems are essential for linking the large clusters of chips needed to train and operate neural networks such as Google’s Gemini.
The partnership will also extend beyond hardware manufacturing through a three-way expansion that includes AI developer Anthropic PBC. According to the filing, “Anthropic, beginning in 2027, will access through Broadcom approximately 3.5 gigawatts” of next-generation computing capacity built on TPU technology.
The scale of this planned infrastructure highlights the accelerating investment in artificial intelligence as technology companies compete to expand their capabilities. For investors, the 2031 timeline signals a potentially stable stream of high-margin revenue for Broadcom’s custom ASIC business.
“We view the announcements significantly increase AVGO’s visibility as a longer-term (5-yr) main design partner for the TPU and remove some prior stock overhang from GOOGL’s intent to insource (COT) or diversify (MediaTek),” Bank of America analyst Vivek Arya said.
“Custom ASIC programs generally have stronger and longer visibility into customer deployment programs, and we believe AVGO is well-positioned to gain accelerator share in CY26 and CY27, now backed by further expansions with Google and Anthropic,” he added.
Broadcom’s position within the rapidly expanding AI infrastructure market continues to attract investor attention, placing the company among the major beneficiaries of the global artificial intelligence buildout alongside sector leader Nvidia. By securing long-term partnerships with hyperscale technology companies, the chipmaker is further strengthening its role at the core of the AI supply chain.