Broadcom Sees AI Chip Revenue Top $100 Billion in 2027 as Custom Chips Win Hyperscalers
Updated
Updated · currently.att.yahoo.com · Aug 18
Broadcom Sees AI Chip Revenue Top $100 Billion in 2027 as Custom Chips Win Hyperscalers
2 articles · Updated · currently.att.yahoo.com · Aug 18
Summary
$100 billion in 2027 AI semiconductor revenue is Broadcom's latest target, up from about $10.8 billion in the second quarter, or roughly $43 billion annualized.
Custom AI chips are driving that outlook because hyperscalers are using application-specific processors as cheaper, workload-tailored alternatives to general-purpose GPUs.
Alphabet is a key example: Broadcom helped develop Google's TPU chips, which the report says are supporting rapid Google Cloud growth.
Several new orders are expected to hit in 2027, expanding Broadcom beyond its current small client base after management already projected more than 200% AI revenue growth in fiscal Q3.