Broadcom Issues Bullish AI Revenue Outlook Amid Mixed Market Reaction
Despite issuing a bullish long-term forecast for its artificial intelligence business, Broadcom Inc (NASDAQ:AVGO) saw its shares fall by 3.3% on Thursday afternoon. The company projected $230 billion in AI revenue for fiscal 2028 and raised its 2027 outlook to $115 billion from more than $100 billion previously, while forecasting earnings per share of at least $30. Jefferies noted that Anthropic and OpenAI are expected to become Broadcom's largest customers in the AI space. The firm highlighted significant growth projections for both companies' deployments with Broadcom, which together account for 75% of the outlined demand by fiscal 2028. Google is also growing under a new long-term agreement but will fall to third-largest customer due to deployment constraints. For its latest quarter, Broadcom reported revenue of $29.6 billion—up 33% sequentially and above estimates—with AI contributing significantly at $16.7 billion in the Semiconductor Solutions segment.
Topics: AI Revenue Outlook Customer Growth Projections Stock Price Reaction