Broadcom (AVGO) has spent the year as one of the market’s favorite AI plays, with the stock price reaching its all-time high in early June, but the stock slid sharply after its June earnings release. In its August update, Goldman Sachs dropped Broadcom from its US Conviction List while keeping its “Buy” rating. The article argues that Broadcom differs from other AI chip stocks because it designs custom AI accelerators, called XPUs, tied to multi-year deals. Broadcom has a custom chip work deal with Google (GOOG) (GOOGL) that will run through 2031. Anthropic is scaling from around 1 gigawatt of compute in 2026 to about 3 gigawatts in 2027. OpenAI, Meta (META), and Apple (AAPL) are on the customer list too. Last quarter, Broadcom booked over $30 billion in AI orders against just $10.8 billion it actually shipped. During the last earnings call, CEO Hock Tan said the company’s visibility now “runs all the way to 2028.” In June, Broadcom teamed up with Apollo and Blackstone to build a 20-gigawatt compute platform, starting with a $35 billion round to fund Anthropic’s buildout. Broadcom still expects over $100 billion in AI chip revenue in fiscal 2027. It also makes networking switches and earns on two parts of every AI build-out, plus a