Morgan Stanley: Pessimism Over Broadcom's Google TPU Unfounded

Morgan Stanley analysts stated that negative views on the custom artificial intelligence chip (TPU) Broadcom produces for Google are misguided. The firm highlighted the strategic importance of these chips in Google's cloud infrastructure, noting that Broadcom's growth potential in this area has been overlooked. Analysts emphasized that while Google's development of its own TPUs is perceived as a threat to Broadcom, the collaboration is actually beneficial for both parties. They noted that Broadcom's expertise in custom chip design and manufacturing enables it to deliver high-performance solutions tailored to Google's needs. Morgan Stanley argued that Broadcom's position in the AI chip market remains strong and that concerns regarding the Google TPU are exaggerated. The firm maintained a positive outlook on Broadcom shares while adding that investors should closely monitor developments in this area. This is not investment advice.

📊 GOOGL — Piyasa Yorumu

▲ up · 60%

While the news includes a positive analyst view on Google's supplier Broadcom, it may provide indirect support for GOOGL shares. Technical indicators point to overbought territory with RSI above 70, increasing the risk of a short-term correction. However, MACD and moving averages confirm a strong uptrend. The 4.6% gain in the last 24 hours suggests momentum could continue. The short-term trend may remain bullish, but caution is warranted due to overbought conditions.

RSI 14

70.2

MACD

3.41

24h Δ

4.66%

📊 MS — Piyasa Yorumu

▲ up · 65%

The news indicates that Morgan Stanley finds the pessimism surrounding Broadcom's Google TPU unwarranted. This could boost confidence in Broadcom's AI chip segment and indirectly have a positive impact on Morgan Stanley (MS) shares. On the technical indicators, the RSI is at 62.7, in neutral territory, while the MACD is above its signal line and positive, supporting short-term upward momentum. The stock is trading above its 20-day and 50-day moving averages and has risen 3.3% in the last 24 hours. However, as it is not yet in overbought territory, there is potential for further upside, though caution is advised.

RSI 14

62.7

MACD

2.00

24h Δ

3.32%

📊 AVGO — Piyasa Yorumu

▲ up · 60%

Morgan Stanley's positive commentary may serve as a catalyst to alleviate concerns regarding Broadcom's Google TPU. Technically, the RSI stands at 52.9, indicating a neutral zone, while the MACD remains above zero but below the signal line. The price is trading above both the 20-day and 50-day moving averages, supporting short-term upside potential. However, the 1.9% decline over the past 24 hours and the weakening MACD warrant caution.

RSI 14

52.9

MACD

0.07

24h Δ

-1.92%

📊 GOOG — Piyasa Yorumu

▲ up · 65%

The news includes a positive analyst view on Broadcom, Google's TPU supplier, which could indirectly boost confidence in Google's AI infrastructure. In technical indicators, the RSI approaching the overbought zone at 71.9 creates some short-term profit-taking risk, but the MACD being above the signal line and the price trading above the 20- and 50-day moving averages support the uptrend. The 4.9% rise in the last 24 hours indicates strong momentum. However, due to the overbought signal and short-term excessive movement, I believe the upside may be limited.

RSI 14

71.9

MACD

3.69

24h Δ

4.89%

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