-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AVGO announces an expanded multi-year strategic partnership with Meta to deploy technology supporting Meta's custom AI accelerator chips (MTIA), with an initial commitment exceeding 1GW as the first phase of a sustained multi-gigawatt rollout through 2029. The partnership will enable Meta to co-develop next-generation AI accelerator chips, leverages AVGO's networking and custom silicon expertise, and positions AVGO to become a critical player for Meta's infrastructure strategy (similar to its largest customer, Alphabet). Given the scale of this expanded partnership, Hock Tan will transition off Meta's Board into an advisor role, providing guidance on Meta's custom silicon roadmap. The Meta deal follows an expanded deal with Alphabet, securing agreements through 2031 to supply custom TPUs, and a 3.5GW Anthropic/GOOGL collaboration. We believe AVGO's expanded deals at significantly higher volumes are adding greater visibility and instilling more confidence into the out years of our model (2028-2030).