Broadcom CEO Hock Tan Forecasts $100 Billion AI Revenue by 2027 as Stock Drops 25% from High
On June 3 earnings call, Broadcom (NASDAQ:AVGO) CEO Hock Tan reaffirmed the company's guidance for over $100 billion in artificial intelligence semiconductor revenue by fiscal 2027. This forecast is supported by long-term contracts with major clients like Alphabet and OpenAI, as well as a growing backlog of AI chip orders. Despite these strong fundamentals, Broadcom’s stock has fallen to around $370 from its 52-week high of $495 — representing a nearly 25% decline. The drop suggests the market is discounting future earnings potential, possibly due to concerns over timing risks or customer concentration in key AI clients. Tan highlighted that bookings for AI semiconductors exceeded $30 billion during the quarter compared with just under $11 billion shipped — indicating strong demand and visibility into 2028. However, investors are currently valuing future earnings at about 19 times expected fiscal 2027 profits versus a peak of around 25 times.
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Topics: AI revenue guidance semiconductors stock performance