JPMorgan is recommending investors to purchase Broadcom Inc.
(NASDAQ:AVGO) shares following its recent one-month 2.22% market fall, dismissing rumors of tech delays by pointing to a rock-solid, multi-year partnership with Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google that guarantees rising chip revenue through 2031.
Clearing The Supply Chain Noise The Wall Street heavyweight pushed back strongly against recent negative reports stemming from sell-side analysts and Asian supply chain sources suggesting that the joint Broadcom-Google next-generation artificial intelligence program was in jeopardy.
In the research note with a title 'Ignore The Noise', analysts Harlan Sur and Mayur Ramdhani stated that "contrary to the recent noise… that Broadcom/Google has delayed or canceled its next-gen Google TPU v9 2nm program, we believe, based on our own recent primary research work and past reports… that the team remains on track." The analysts emphasized that the highly anticipated chip program is proceeding with "NO delays; NO cancellations," reinforcing Broadcom's stellar execution track record.
According to JPMorgan, Broadcom maintains a commanding "18mos+ lead" over Google’s internal custom chip-design team, which continues to struggle with optimizing its current hardware architecture.
