Alphabet's massive $175-185 billion capital expenditure budget for 2026 sent shockwaves through the tech sector, with analysts predicting Broadcom as the biggest beneficiary. The chipmaker's custom tensor processing units and networking equipment position it perfectly to capture a significant share of Alphabet's AI infrastructure spending.

Broadcom's role as co-developer of Alphabet's TPUs makes it uniquely positioned to profit. While Alphabet designs the chips, Broadcom supplies critical intellectual property, manages foundry relationships with Taiwan Semiconductor Manufacturing, and books revenue for each chip produced. Citigroup estimates Alphabet accounted for nearly $13 billion in Broadcom's ASIC revenue in fiscal 2025, representing about 17% of Alphabet's capex during the same period.

With Alphabet pushing aggressively toward TPUs over Nvidia GPUs, Broadcom's TPU revenue from the search giant could potentially double or triple next year. The company also received a $21 billion order from Anthropic for TPUs to be used with Google Cloud. Given Broadcom's total revenue of just $63.9 billion in fiscal 2026, its total revenue could double this fiscal year as more customers turn to Broadcom for custom chip design.