Wolfe upgrades Broadcom as TPU scale-up boosts AI earnings outlook

Wolfe Research upgraded Broadcom, citing accelerating demand for custom AI chips and large scale TPU deployments as key earnings drivers. The brokerage said Broadcom’s expanding role in hyperscaler AI infrastructure positions it well for sustained revenue growth. Analysts highlighted improving visibility on long-term contracts and margin expansion, noting that AI-led semiconductor spending is strengthening Broadcom’s earnings power beyond traditional networking businesses.