Broadcom Projects AI Chip Sales to Double in Both 2027 and 2028

Deep News09-03 17:00

Broadcom Inc (NASDAQ: AVGO) has released financial results for the quarter ending August 2, revealing a significant 86% year-over-year revenue surge to $29.6 billion. This growth signals that its AI chip design services for major clients like Google, Meta, and OpenAI continue to expand at a remarkable pace.

During the earnings call, CEO Hock Tan presented an ambitious forecast: AI segment revenue is expected to double from this year's projected $57 billion to $115 billion in 2027. Furthermore, Broadcom has established a clear business outlook, anticipating that AI chip revenue could double once again in 2028, reaching $230 billion. The company also projects earnings per share to potentially surpass $30 in 2028, a substantial increase from the less than $5 reported last year.

In the recently concluded quarter, AI chip revenue skyrocketed by 221% to reach $16.7 billion. Looking ahead, Broadcom expects AI chip revenue growth to accelerate even further to 236% in the quarter ending in October.

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