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Broadcom forecasts revenue from AI chips surging past $100 billion in 2027
- IBJ Bureau
- Mar 05, 2026
Chip designer Broadcom has projected that revenue from its artificial intelligence (AI) chip would exceed $100 billion next year. This signals a surging demand for custom chips in a market dominated by Nvidia.
Big Tech firms, such as Alphabet, Microsoft, Amazon and Meta, are expected to spend at least $630 billion to build AI infrastructure this year, boosting demand for chips, servers, storage and networking equipment from companies like Broadcom.
“Our visibility in 2027 has dramatically improved. Today, in fact, we have to achieve AI revenue from chips in excess of $100 billion in 2027,” CEO Hock Tan has said on a post-earnings call.
The company expects second-quarter (April-June 2026) revenue to be about $22 billion, above analysts’ average estimate of $20.56 billion, according to data compiled by LSEG. It has projected AI chip revenue of $10.7 billion in the quarter.
Broadcom, which supplies semiconductors and infrastructure software, does not typically design entire AI chips itself. Instead, it works with clients such as Google to develop their tensor processing units (TPUs) and with ChatGPT-maker OpenAI on their in-house custom processors.
“Broadcom’s guidance for the April quarter and into 2027 was very encouraging. While the company typically only guides one quarter at a time, the visibility into results more than a year out is an indication of significant growth in demand,” notes DA Davidson analyst Gil Luria.
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