Broadcom projects AI chip revenue to exceed $100 billion in 2027
AI revenue more than doubled to $8.4 billion in the latest quarter
The company helps major tech giants design custom silicon chips for AI
Six key customers including Google, Meta, and OpenAI are working with Broadcom
Broadcom has secured the supply chain needed to achieve its 2027 targets
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Broadcom CEO Hock Tan announced in an earnings call that the company projects AI chip revenue will reach significantly more than $100 billion in 2027, as demand surges from major tech giants like Google, Meta, and OpenAI who increasingly require assistance designing custom silicon for artificial intelligence applications. The chipmaker reported stronger-than-expected results for its fiscal first quarter, with AI revenue more than doubling from a year earlier to $8.4 billion while total sales increased by 29% to $19.3 billion. The company forecasts AI semiconductor revenue of $10.2 billion for the current period, and Tan emphasized that Broadcom has secured the necessary supply chain to achieve these ambitious targets despite industry challenges including high bandwidth memory shortages and advanced manufacturing constraints. Broadcom's growth is fueled by its role in assisting major tech companies with in-house AI accelerator development, currently working with six key customers including Google, Meta, Anthropic, and OpenAI, with Fujitsu and ByteDance likely completing the group as custom AI deployment enters its 'next phase' with accelerating demand.
Google LLC ( , GOO-gəl) is an American multinational technology corporation focused on information technology, online advertising, search engine technology, email, cloud computing, software, quantum computing, e-commerce, consumer electronics, and artificial intelligence (AI). It has been referred t...
Broadcom Inc. is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets.
Tan Hock Eng (Chinese: 陳福陽; pinyin: Chén Fúyáng; Pe̍h-ōe-jī: Tân Hok-iâng; born 1951 or 1952) is a Malaysian-born Chinese-American business executive. He is the CEO of Broadcom Inc. He was the third-highest-paid CEO in the US in 2023, earning US$161.8 million that 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 ...
