Alphabet Vs. Broadcom: Rotate Out of AVGO and into GOOG as a Custom Chip Creator and Hyperscaler Partner

The article argues investors should favor Alphabet over Broadcom in the AI infrastructure trade. It says Alphabet combines cloud, custom TPU chips, and Gemini models, giving it more pricing control and a stronger vertical stack than Broadcom’s merchant-silicon model. The piece highlights Alphabet’s Q1 FY2026 results: EPS of $5.11 vs. $2.63 expected, revenue of $109.9 billion (+21.8% YoY), and Google Cloud revenue of $20.03 billion (+63% YoY). It also notes capex more than doubled to $35.67 billion, with 2026 guidance of $175 billion to $185 billion. By contrast, Broadcom posted strong AI semiconductor growth, but its business depends on a few hyperscaler customers, including Google, which may increasingly self-supply chips. The article frames GOOG as cheaper on valuation and less exposed to concentration risk, while AVGO has sold off sharply, making GOOG the preferred AI exposure.