Broadcom CEO Hock Tan Forecasts AI Revenue to Reach $230 Billion by Fiscal 2028
On the latest earnings call, Broadcom (NASDAQ:AVGO) CEO Hock Tan raised his fiscal 2027 AI semiconductor revenue target from over $100 billion to approximately $115 billion. He also projected a new goal of $230 billion in fiscal 2028 — four times the current year's expected AI revenue of about $58 billion. These forecasts are supported by secured supply chains, including leading-edge wafers and substrates, though deployment timelines remain uncertain due to external factors like data center construction delays. The company reported a record third-quarter fiscal 2026 performance with an 86% year-over-year revenue increase to $29.6 billion and net income of $13.1 billion. AI semiconductor revenue alone surged from $10.8 billion in the second quarter to $16.7 billion, with guidance for a further jump to $21.7 billion in Q4. However, achieving these targets heavily depends on just six custom accelerator customers and timely deployment of data center infrastructure. Despite demand outpacing forecasts, risks remain around manufacturing bottlenecks and delays in customer-side deployments.
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