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Broadcom Forecasts AI Chip Revenue to Exceed $100 B by 2027, CEO Emphasizes Focus on Networking Gear
On June 5, 2026, Broadcom Inc. (NASDAQ: AVGO) told Bloomberg Tech that its AI‑chip division will surpass $100 billion in revenue by fiscal 2027. The announcement came just a day after the company’s shares slipped more than 4 percent on June 4, following a quarterly earnings report that fell short of Wall Street expectations. President and CEO Hock Tan described the market’s reaction as “very surreal,” underscoring the tension between short‑term sentiment and long‑term ambition.
During the San Francisco interview, Tan framed AI revenue as “surging” and described demand for AI infrastructure as “almost insatiable.” He outlined Broadcom’s focus on supplying networking gear and custom accelerators that power AI systems, rather than pursuing additional acquisitions. “Acquisitions can distract both the company and its customers,” Tan said, adding that the AI‑infrastructure segment could exceed $100 billion by fiscal 2027.
The statement signals a departure from Broadcom’s historically deal‑centric trajectory. Since 2016, the company has closed high‑profile purchases, including VMware, Symantec Enterprise Security, and CA Technologies. The VMware deal, closed in November 2023, was valued at $69 billion. Tan’s remarks suggest a pivot toward organic growth within the semiconductor and infrastructure‑software divisions.
Broadcom is a multinational designer, developer, and supplier of semiconductor and infrastructure software products. In 2025, roughly 58 percent of its revenue derived from semiconductor‑based products, with the remaining 42 percent coming from software and services. The firm’s market capitalization topped $2 trillion in April 2026, making it the sixth company ever to reach that milestone.
The $100 billion AI‑chip forecast rests on the company’s established relationships with leading AI customers. Broadcom provides custom processors to Google for its tensor‑processing units (TPUs) and to OpenAI for in‑house chips. Reuters reported that the forecast remained unchanged from earlier guidance issued after the company missed second‑quarter revenue estimates.
After the earnings release, Broadcom’s stock price fell as investors reacted to the lower‑than‑expected revenue guidance. Tan reiterated the company’s focus on fundamentals over short‑term market sentiment. He acknowledged the environment was “very surreal,” but affirmed that Broadcom would keep investing in the AI infrastructure he believes will drive long‑term growth.
The forecast places Broadcom among the top semiconductor stocks cited by billionaire investors. Analysts note that while the AI‑chip market is dominated by firms such as Nvidia, Broadcom’s diversified product portfolio and strong customer base position it to capture a significant share of the expanding demand.
In summary, Broadcom’s CEO has set a clear target for AI‑chip revenue, projecting it to exceed $100 billion by fiscal 2027. The company’s strategy centers on networking and custom accelerator products rather than further acquisitions. Shares reacted negatively to a quarterly report that fell short of Wall Street expectations, but leadership remains focused on long‑term AI infrastructure.
Today, Broadcom’s AI‑chip revenue forecast remains unchanged, shares have dipped following a disappointing earnings report, and the company continues to invest in its semiconductor and infrastructure‑software businesses. No new product launches or regulatory developments were announced in connection with the forecast.
During the San Francisco interview, Tan framed AI revenue as “surging” and described demand for AI infrastructure as “almost insatiable.” He outlined Broadcom’s focus on supplying networking gear and custom accelerators that power AI systems, rather than pursuing additional acquisitions. “Acquisitions can distract both the company and its customers,” Tan said, adding that the AI‑infrastructure segment could exceed $100 billion by fiscal 2027.
The statement signals a departure from Broadcom’s historically deal‑centric trajectory. Since 2016, the company has closed high‑profile purchases, including VMware, Symantec Enterprise Security, and CA Technologies. The VMware deal, closed in November 2023, was valued at $69 billion. Tan’s remarks suggest a pivot toward organic growth within the semiconductor and infrastructure‑software divisions.
Broadcom is a multinational designer, developer, and supplier of semiconductor and infrastructure software products. In 2025, roughly 58 percent of its revenue derived from semiconductor‑based products, with the remaining 42 percent coming from software and services. The firm’s market capitalization topped $2 trillion in April 2026, making it the sixth company ever to reach that milestone.
The $100 billion AI‑chip forecast rests on the company’s established relationships with leading AI customers. Broadcom provides custom processors to Google for its tensor‑processing units (TPUs) and to OpenAI for in‑house chips. Reuters reported that the forecast remained unchanged from earlier guidance issued after the company missed second‑quarter revenue estimates.
After the earnings release, Broadcom’s stock price fell as investors reacted to the lower‑than‑expected revenue guidance. Tan reiterated the company’s focus on fundamentals over short‑term market sentiment. He acknowledged the environment was “very surreal,” but affirmed that Broadcom would keep investing in the AI infrastructure he believes will drive long‑term growth.
The forecast places Broadcom among the top semiconductor stocks cited by billionaire investors. Analysts note that while the AI‑chip market is dominated by firms such as Nvidia, Broadcom’s diversified product portfolio and strong customer base position it to capture a significant share of the expanding demand.
In summary, Broadcom’s CEO has set a clear target for AI‑chip revenue, projecting it to exceed $100 billion by fiscal 2027. The company’s strategy centers on networking and custom accelerator products rather than further acquisitions. Shares reacted negatively to a quarterly report that fell short of Wall Street expectations, but leadership remains focused on long‑term AI infrastructure.
Today, Broadcom’s AI‑chip revenue forecast remains unchanged, shares have dipped following a disappointing earnings report, and the company continues to invest in its semiconductor and infrastructure‑software businesses. No new product launches or regulatory developments were announced in connection with the forecast.
