JPMorgan is recommending investors to purchase Broadcom Inc. (NASDAQ: AVGO) shares following its recent one-month 2.22% market fall, dismissing rumors of tech delays by pointing to a rock-solid, multi-year partnership with Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google that guarantees rising chip revenue through 2031.
Clearing The Supply Chain Noise
The Wall Street heavyweight pushed back strongly against recent negative reports stemming from sell-side analysts and Asian supply chain sources suggesting that the joint Broadcom-Google next-generation artificial intelligence program was in jeopardy.
In the research note with a title 'Ignore The Noise', analysts Harlan Sur and Mayur Ramdhani stated that "contrary to the recent noise... that Broadcom/Google has delayed or canceled its next-gen Google TPU v9 2nm program, we believe, based on our own recent primary research work and past reports... that the team remains on track."
The analysts emphasized that the highly anticipated chip program is proceeding with "NO delays; NO cancellations," reinforcing Broadcom's stellar execution track record.
According to JPMorgan, Broadcom maintains a commanding "18mos+ lead" over Google's internal custom chip-design team, which continues to struggle with optimizing its current hardware architecture.
Long-Term Revenue Secured Through 2031
The foundational pillar of JPMorgan's bullish outlook is a definitive long-term contract signed earlier this year, which shields the semiconductor giant from market volatility.
The firm highlighted that the "five-year agreement between Google and Broadcom in March... locks in Broadcom's TPU design win roadmap for the next four generations of TPU (v8, v9, v10, v11)."
Crucially for long-term shareholders, the bank emphasized that this pact "includes commitments for increasing TPU revenues on an annual basis through 2031," ensuring a highly predictable and expanding pipeline of high-margin AI revenue.
Unshakable AI Market Dominance
Reiterating its "Overweight" rating on the stock with a December 2026 price target of $580.00, implying a 40.99% upside from current levels, JPMorgan concluded that the broader market fundamentally underestimates Broadcom's competitive moat.
Having led the ASIC market for over 30 years, the firm remains a critical backbone for global tech giants. Given the locked-in revenue stream and temporary stock weakness, the analysts emphasized that they "would be aggressive buyers at current levels."
How Has AVGO Performed In 2026?
Shares of AVGO have advanced by 18.85% year-to-date. It closed 4.70% higher at $411.35 apiece on Thursday, and fell 1.47% in premarket on Monday.
Over the last month, AVGO stock was down 2.22%, and it rose 24.70% over the last six months; the stock was 63.71% higher over the year. Benzinga's Edge Stock Rankings indicate that AVGO maintains a strong price trend in the short, long, and medium terms, with a solid quality score.