UBS Reports on Broadcom, NVIDIA, and Terafab AI Developments

According to Chaoxiang Research, UBS released a SemiBytes industry brief on August 24, highlighting concurrent developments across three key pillars: Broadcom, NVIDIA, and SpaceX’s Terafab. Broadcom will release its second-quarter results on September 2; UBS forecasts AI revenue of approximately $16 billion in Q3 and $21–22 billion in Q4. UBS has revised its 2027 AI revenue forecast downward from approximately $135 billion to $130 billion, slightly adjusting its target price from $485 to $470 while maintaining a Buy rating. Anthropic contributed approximately $2.5 billion in Q3, while Google Cloud’s AI revenue increased by about $2 billion quarter-over-quarter. NVIDIA CEO Jensen Huang disclosed an expansion of the company’s business model toward compute infrastructure, including a $1.5 billion investment in SB Energy via the PORTS-Pike project and up to $105 billion in credit support to assist OpenAI in securing land and power facilities for a 4.25 GW capacity. UBS believes that land, power, and facilities are becoming strategic inputs in the AI supply chain. Regarding Terafab, in July, Tesla’s career portal listed 44 open positions covering all major semiconductor manufacturing processes, including roles for memory design and integration engineers—confirming internal intentions for memory manufacturing. Satellite imagery of the Grimes County, Texas site indicates it remains in early stages, with only site clearing activities currently visible.