Broadcom CEO Hock Tan Says AI Demand Exceeds $115 Billion Revenue Forecast
Broadcom (NASDAQ: AVGO) is experiencing strong demand for its application-specific integrated circuits (ASICs), which are used in artificial intelligence applications. In a recent earnings call, CEO Hock Tan stated that the company's projected $115 billion AI revenue forecast for 2027 will likely be exceeded due to high customer demand. Tan also provided guidance indicating that Broadcom expects its AI processor revenue to double again by fiscal 2028, reaching an estimated $230 billion. This growth is driven by long-term contracts with major tech firms like Alphabet and OpenAI for custom-designed chips used in advanced AI models such as Google Gemini. The company's third-quarter results showed a significant increase in sales and earnings per share, largely attributed to the success of its AI processors. Analysts have responded positively, raising their average price target for Broadcom stock by 46%, with over 40 analysts assigning it a 'buy' rating.
