Broadcom CEO Hock Tan Says AI Chip Demand Exceeds $115 Billion Revenue Forecast
Broadcom (AVGO) is experiencing strong demand for its application-specific integrated circuits (ASICs), which are used in artificial intelligence models. On the third-quarter earnings call, CEO Hock Tan stated that current demand exceeds Broadcom's AI revenue forecast of $115 billion by 2027 and expects it to grow further into 2028. Tan also projected a doubling of AI processor revenue again in fiscal 2028, reaching an estimated $230 billion. This growth is driven by long-term contracts with major tech companies like Alphabet for custom-designed processors such as Google's Tensor Processing Units (TPUs). OpenAI and Anthropic are also key customers ordering chips to support their advanced AI models. The surge in demand has led to significant financial gains, including a 96% increase in non-GAAP earnings per share. Analysts have responded positively, with an average price target of $533 for Broadcom stock — over 40% higher than its current value.
Tickers: $AVGO
Topics: AI processors Broadcom revenue forecast CEO guidance