AI's Cash Splash Continues: Meta Platforms and Broadcom Expand Custom Chip Partnership

Meta Platforms and Broadcom expanded a multi‑year custom‑chip partnership to co‑develop Meta’s MTIA accelerators through 2029, with Broadcom supplying XPU-based accelerators, advanced packaging and high‑speed Ethernet. The initial phase commits more than 1 gigawatt of compute with a roadmap to multiple gigawatts, reinforcing broad hyperscaler AI spending that’s forecast at roughly $635–$665 billion in 2026. The deal strengthens Meta’s silicon diversification and cost/efficiency goals amid $115–$135 billion 2026 capex guidance, while adding a steady, multi‑year AI revenue stream for Broadcom (whose AI revenue rose 106% to $8.4B in fiscal Q1 2026). Analysts are broadly positive on Meta (consensus “Strong Buy” and ~ $856 12‑month target), and the partnership is presented as a concrete tailwind for both stocks, though near‑term capex pressure for Meta and execution/semiconductor cycle risk for Broadcom remain.