Broadcom CEO Hock Tan sees AI chip revenue 'significantly' above $100 billion next year

In this article AVGO GOOGL META Follow your favorite stocks CREATE FREE ACCOUNT Broadcom CEO Hock Tan. Lucas Jackson | Reuters Broadcom CEO Hock Tan sees the artificial intelligence boom gaining so much steam that he's projecting AI chip revenue next year "significantly in excess of $100 billion." After the chipmaker reported better-than-expected results for the fiscal first quarter and issued a strong forecast for the current period, Tan said on his company's earnings call that demand is picking up from large customers that are increasingly in need of Broadcom's help in designing custom silicon. "We have also secured the supply chain required to achieve this," Tan said, regarding the 2027 sales target. AI revenue in the first quarter more than doubled from a year earlier to $8.4 billion, while total sales increased 29% to $19.3 billion. The company expects AI semiconductor revenue of $10.2 billion this quarter. Broadcom shares popped more than 5% in extended trading on Thursday after Tan's comments. Chip companies like Broadcom have faced a number of headwinds in recent months, including a shortage of the high bandwidth memory crucial for custom accelerators, and capacity constraints at the most advanced levels of chip manufacturing and packaging. Broadcom helps its customers translate their chip designs into silicon, providing back-end support before the processors are sent off to be manufactured at huge fabrication plants by companies like Taiwan Semiconductor Manufacturing Company . watch now VIDEO 15:58 15:58 Breaking down AI chips, from Nvidia GPUs to ASICs by Google and Amazon Tech It's a role that's fueled Broadcom's growth as more tech giants design in-house accelerators for AI. Tan said custom AI deployment is entering its "next phase" and is expected to speed up, as the company helps six key customers design their chips. Chief among those are Google , Meta , Anthropic and OpenAI, with Fujitsu and ByteDance likely as the final two. Google was the first to ...