Broadcom CEO expects AI chip revenue over $100B

Broadcom Broadcom Inc. CEO Hock Tan says the company’s AI chip revenue is expected to soar well above $100 billion in 2027, fueled by strong demand for custom silicon designs from major tech companies.

In the fiscal first quarter, Broadcom’s AI revenue more than doubled year-over-year to $8.4 billion, while total sales rose 29% to $19.3 billion. The company expects AI semiconductor revenue of $10.2 billion this quarter alone, News.Az reports, citing CNBC.

Tan highlighted that demand is rising from large customers needing assistance in designing in-house AI accelerators, and that Broadcom has secured the necessary supply chain to meet its ambitious targets.

Broadcom assists clients in translating chip designs into manufacturable silicon, working with fabrication plants like Taiwan Semiconductor Manufacturing Company.

The company is helping six major clients design their AI chips: Google, Meta, Anthropic, OpenAI, and likely Fujitsu and ByteDance.

• Google has been designing in-house tensor processing units (TPUs) since 2015, now available to cloud customers.

• Meta is developing its own MTIA accelerator with Broadcom’s support.

• Custom AI deployments are entering a “next phase,” Tan said, as demand for specialized chips accelerates.

Tan told analysts that projected revenue comes from multiple gigawatts of AI chip capacity: 3 GW at Anthropic, 3 GW at Google, 2 GW at Meta, and 1 GW from OpenAI, among others. Prices per gigawatt vary, but the estimates suggest the $100 billion target is achievable.

While the AI chip market is a major growth driver, Broadcom also produces digital signal processors, data processing units, and networking switches, adding to overall revenue.

Shares of Broadcom rose more than 5% in after-hours trading following Tan’s optimistic guidance.

This forecast underscores Broadcom’s role as a major beneficiary of the AI boom, helping tech giants scale custom silicon for AI applications globally.

News.Az 

By Aysel Mammadzada