Broadcom CEO Hock Tan Reaffirms AI Revenue Targets Amid Anthropic Slowdown Debate
Broadcom CEO Hock Tan addressed concerns over a potential slowdown in frontier AI model development, stating that demand for AI infrastructure remains strong and the company's long-term revenue targets remain unchanged. His comments came after Anthropic CEO Dario Amodei called for slowing down AI progress to ensure safety, an idea supported by OpenAI’s Sam Altman and Elon Musk. This sparked investor uncertainty about future compute demand, leading to a 4.8% drop in Broadcom shares and broader declines across chip stocks. Tan emphasized that both training and inference phases of AI development will continue driving strong demand for semiconductors. He forecasted $115 billion in fiscal 2027 AI semiconductor revenue, with expectations it could double to $230 billion by fiscal 2028. Tan also noted Anthropic is on track to become Broadcom’s largest custom chip customer within the next two years. While acknowledging the need for governance and safeguards around powerful AI models, Tan compared their potential impact favorably to historical innovations like the Industrial Revolution.
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Topics: AI Infrastructure Chip Demand Earnings Guidance Market Reaction