Why Mizuho’s Explosive TPU Forecast Makes Broadcom a Potential Multi-Bagger by 2028

Wall Street periodically hands retail investors moments that separate patient capital from the crowd. Broadcom (NASDAQ:AVGO | AVGO Price Prediction) delivered solid Q2 fiscal 2026 results last week — revenue of $22.2 billion, up 48% year-over-year, with AI semiconductor revenue hitting a record $10.8 billion, up 143%. Yet shares fell sharply afterward, now down roughly 20% from recent highs around $480 to trade near $398 per share.

That pullback creates an entry point if one Wall Street firm’s call proves directionally correct. Mizuho forecasts explosive growth in Google tensor processing unit (TPU)-related opportunities that could reshape Broadcom’s trajectory through 2028.

The TPU Surge Mizuho Sees Coming

Mizuho analysts project TPU sales could surge dramatically, potentially reaching over 35 million units in 2028, driven by hyperscaler buildouts. OpenAI’s planned ramp to 10 gigawatts of capacity stands out as a major catalyst. Broadcom’s own MTIA (Meta Training Inference Accelerator) development adds another layer of custom silicon momentum.

To translate that into dollars, Mizuho sees potential for Broadcom to generate $300 billion in revenue from its deepened relationship with Google alone — even at a conservative 60% market share of relevant TPU work. Add another $300 billion from the partnership tied to Apollo/Blackstone infrastructure plays, and the cumulative opportunity exceeds half a trillion dollars over the multi-year horizon. These figures rest on revenue-per-gigawatt estimates around $25 billion for custom AI arrangements.

For context, Broadcom guided toward roughly $56 billion in AI revenue for fiscal 2026, up 180% from roughly $20 billion in FY 2025, and anticipates more than $100 billion in FY 2027. Meanwhile, Mizuho is modeling significant acceleration: It forecasts roughly $70 billion in FY2026, $122 billion in 2027, and jumping to $170 billion in 2028.

There’s a good argument to be made here that Mizuho may not be far off. Google has reportedly partnered with Intel (NASDAQ:INTC) to produce 3 million TPUs in 2028 to ensure it has plenty of supply available.

How Broadcom Stacks Up

Broadcom does not chase Nvidia’s (NASDAQ:NVDA) general-purpose GPU dominance. Instead, it excels in custom ASICs and networking silicon that powers the infrastructure behind hyperscale AI clusters. This positioning often yields stickier, high-margin revenue compared to merchant GPU sales.

Key Metrics Snapshot:

• Broadcom: Trailing P/E 66x, forward P/E 20x, dividend yield 0.67% ($2.60 annual), AI revenue growth 143% in Q2.
• Nvidia: Commands premium valuation with massive GPU share but faces increasing custom ASIC competition.
• Advanced Micro Devices (NASDAQ:AMD): Strong GPU challenger but trails in custom silicon scale and ecosystem maturity for many hyperscaler designs.

Broadcom’s diversified base — networking, storage, and software — provides ballast that pure-play AI names sometimes lack. Free cash flow generation remains robust, supporting both R&D and shareholder returns via dividends and buybacks.

Risks Worth Noting

Granted, execution is never guaranteed. Supply constraints (lasers, advanced packaging), potential hyperscaler capex digestion pauses, and competition from in-house designs could temper results. The recent post-earnings drop reflects investor disappointment over unchanged near-term AI guidance despite the long-term setup. That said, management has a track record of under-promising and over-delivering as growth materializes.

Key Takeaway

If Mizuho’s TPU and custom silicon outlook holds — anchored in OpenAI’s 10GW ambitions, Arm Holdings (NASDAQ:ARM) new ASIC offering later this year or early 2027, Google’s TPU expansion, and Broadcom’s MTIA progress — the current share price weakness around $400 could mark a historic entry point for long-term investors. The stock’s forward valuation looks reasonable against projected AI revenue growth that could compound at 80%+ rates in peak years.

Smart investors buy when sentiment sours but fundamentals are strong. Broadcom’s setup fits that profile heading into 2028. Its stock could be offering a unique buying opportunity for patient investors willing to hold through the volatility still to come.

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