Morgan Stanley wants you to know the Broadcom bears have it wrong. In a note defending the chipmaker’s position in Google’s custom silicon pipeline, analysts led by Joseph Moore laid out a case that Broadcom’s role in building Google’s Tensor Processing Units is not only secure but growing fast, with TPU shipments projected to reach 3.2 million units in 2026 and 5 million in 2027.
The bull case in plain English
Broadcom isn’t just another vendor in Google’s supply chain. It’s the primary ASIC implementation partner, handling silicon design and advanced packaging for Google’s TPU generations, including the upcoming v7 and v8 chips.
The two companies extended their partnership through 2031, a detail disclosed in an April 2026 8-K filing.
Morgan Stanley’s analysts specifically flagged that bears have been overstating the risk of Google moving chip design fully in-house or turning to competitors. The reality, according to the note, is that Broadcom provides essential components that are hard to replicate, including high-speed SerDes, power management, and advanced packaging solutions.
