Broadcom (AVGO) is positioned to benefit from rising Tensor Processing Unit, a custom artificial intelligence accelerator chip developed by Alphabet's (GOOGL, GOOG) Google, as unit shipments and selling prices increase into calendar year 2026 and 2027, BofA said Monday in a report.

TPUv7 volumes are projected to top 3 million units in calendar year 2026, with average selling price expected to climb to about $12,000 to $15,000 from roughly $5,000 to $6,000 in calendar year 2025, the report said.

Potential risks include Google selling TPUs directly to customers and rising MediaTek competition in future TPU generations, the report said. Nvidia's (NVDA) Vera Rubin platform, expected in the second half of 2026, could also pressure comparative performance.

BofA reiterated its buy rating on Broadcom with a $460 price objective, up from $400.

Shares of the company were down 2.6% in recent Monday trading.

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