Broadcom Outlines Long-Term AI Semiconductor Revenue Targets of $115 Billion and $230 Billion for FY2027 and FY2028
In its latest earnings report, Broadcom Inc. (NASDAQ: AVGO) reported strong quarterly results with sales rising 86% year-over-year to $29.6 billion and EPS increasing by 96%. Despite beating revenue estimates, the company's guidance for next quarter fell slightly short of expectations at $34.8 billion versus an estimated $35 billion, leading to a post-earnings share price decline. The more significant development came during CEO Hock Tan’s presentation where Broadcom provided long-term AI semiconductor sales forecasts. The firm expects FY2027 revenue from this segment to reach $115 billion and double again in FY2028 to $230 billion, driven by robust demand for its XPU chips used in artificial intelligence applications. Broadcom also highlighted that Anthropic and OpenAI are expected to become the largest customers of its AI semiconductors, surpassing Alphabet. However, supply constraints—particularly high-bandwidth memory (HBM)—are currently limiting growth potential.
Topics: AI semiconductors earnings report long-term growth strategy revenue guidance