Sep. 3 at 2:17 AM
Broadcom forecast a major surge in AI chip sales, boosting optimism that it can challenge Nvidia’s dominance. CEO Hock Tan said AI chip revenue could double to about
$115 billion in fiscal 2027 and reach
$230 billion the following year, while adjusted EPS could exceed
$30 in fiscal 2028.
The custom AI chip business is benefiting from strong demand from Google, Anthropic, OpenAI and Meta, with Anthropic expected to become Broadcom’s largest customer in 2027 and OpenAI the second-largest. Tan said demand currently exceeds supply capacity.
Third-quarter revenue rose 86% to
$29.6 billion, above estimates, while adjusted EPS reached
$3.32 versus
$3.23 expected. AI semiconductor revenue hit
$16.7 billion, ahead of the
$15.9 billion consensus. Fourth-quarter revenue is expected at
$34.8 billion, slightly below the
$35.1 billion analyst average, while AI chip revenue is projected at
$21.7 billion.
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