Broadcom CEO Hock Tan Defends $230 Billion AI Chip Revenue Target Amid Investor Concerns
Broadcom CEO Hock Tan defended the company's ambitious $230 billion revenue target for its AI chips in fiscal 2028, despite investor concerns over a potential slowdown in frontier AI development. Speaking on CNBC’s 'Mad Money,' Tan emphasized that demand for compute infrastructure and AI deployment remains strong and durable. His comments followed an essay by Anthropic CEO Dario Amodei calling for slower AI advancement, which caused market jitters. Broadcom's stock dropped 4.8% in response to the uncertainty surrounding future AI development pace, while the iShares Semiconductor ETF fell 5.6%. Tan had previously projected $115 billion in fiscal 2027 and a doubling by 2028 for AI semiconductor revenue — figures that now face scrutiny as Anthropic's influence on Broadcom’s custom chip sales grows. Tan also highlighted inference, the real-world deployment of trained models, as an area with strong future demand. While agreeing with Amodei on the need for guardrails around AI development, he dismissed deeper concerns about its trajectory and compared AI to a transformative force akin to the Industrial Revolution.
