Mizuho told clients that worries about one major semiconductor company ceding custom-chip ground to rivals are overdone, and the firm urged investors to consider buying a recent pullback in the stock. The firm highlighted a substantial addressable market tied to Google’s expanding Tensor Processing Unit - or TPU - deployment as a key rationale.
Broadcom is the company at the center of Mizuho’s note. Analyst Vijay Rakesh led the bank’s 10th quarterly AI ASIC roadmap call, and presented projections that place Google TPU shipments at roughly 35 million units by 2028 - an increase of about 8x compared with an estimated 4.3 million units in 2026.
Rakesh quantified the opportunity, saying that this shipment trajectory could underpin more than $600 billion of potential benefit for Broadcom by 2028 when TPU revenues are combined with data center infrastructure transactions involving Apollo and Blackstone.
"Buy the AVGO pullback; we believe investor concerns with ASIC/GPU share and MTK competition are overblown," Rakesh wrote, framing the call to action in straightforward terms.
Mizuho assessed the competitive landscape and noted particular headwinds for MediaTek as a challenger. The bank identified tangible execution hurdles for the competitor, including challenges around third-party SerDes integration and the process of maturing packaging yields.
By contrast, Mizuho emphasized Broadcom’s integrated offering - a full-stack combination of ASIC, SerDes, and packaging capabilities - as a structural advantage. The bank ran a conservative scenario in which Broadcom captures 60% of the TPU market by 2028, a share it described as below the company’s current estimated market share of more than 80%. Even at that 60% level, Mizuho estimated approximately $300 billion in TPU revenues alone for Broadcom in 2028.
The note also pointed to additional potential upside beyond Google: Mizuho flagged planned or expected ASIC ramps at OpenAI and Meta in the first half of 2027, and noted the possibility of an ARM AI ASIC debut in late 2026 or early 2027 as further sources of incremental demand.
This analysis frames Broadcom’s pullback as a buying opportunity rooted in projected TPU volume growth and Broadcom’s platform advantages, while calling out specific execution risks for a named rival and listing other potential demand drivers in the AI ASIC ecosystem.