Broadcom is projecting a major surge in AI chip sales, and the tone here is clearly optimistic about challenging Nvidia's position. CEO Hock Tan said AI chip revenue could double to about $115 billion in fiscal 2027, then reach $230 billion the following year, with adjusted EPS potentially exceeding $30 in fiscal 2028.
The custom AI chip business is being driven by strong demand from Google, Anthropic, OpenAI and Meta. Anthropic is expected to become Broadcom's largest customer in 2027, with 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 hit $3.32 versus $3.23 expected. AI semiconductor revenue reached $16.7 billion, ahead of the $15.9 billion consensus. Fourth-quarter revenue is guided at $34.8 billion, slightly below the $35.1 billion analyst average, while AI chip revenue is projected at $21.7 billion.
$Broadcom(AVGO)$ $NVIDIA(NVDA)$ $Alphabet(GOOGL)$ $Meta Platforms, Inc.(META)$
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