UBS: Broadcom AI Guidance Slightly Adjusted, Nvidia Extends to Infrastructure, Terafab Construction Kicks Off

UBS released its SemiBytes industry commentary on August 24, noting that three main tracks—Broadcom, Nvidia, and SpaceX's Terafab—are advancing in parallel. UBS expects Broadcom's Q3 AI revenue to be approximately $16 billion, rising to $21-22 billion in Q4; it lowered its 2027 AI revenue forecast from roughly $135 billion to about $130 billion, with the target price slightly adjusted from $485 to $470 while maintaining a Buy rating. Anthropic is expected to contribute approximately $2.5 billion in Q3, while Google Cloud AI revenue is seen adding about $2 billion quarter-over-quarter.

On the Nvidia front, Jensen Huang disclosed a business model shift toward computing infrastructure, investing $1.5 billion in SB Energy through the PORTS-Pike project and providing up to $105 billion in credit support to help OpenAI secure 4.25GW of land and power facilities; UBS believes land, electricity, and plant capacity are becoming strategic input factors in the AI supply chain. Regarding Terafab, Tesla's job portal listed 44 related positions in July, covering all major semiconductor process steps, including memory design/integration engineer roles, hinting at internal memory manufacturing intentions; satellite imagery of the Grimes County, Texas site shows only site clearing, indicating it remains in early stages.

[TechFlow]