Broadcom, TSMC Post AI-Fueled Q1 Gains as Broadcom Targets $100 Billion by 2027
Updated
Updated · The Motley Fool · May 14
Broadcom, TSMC Post AI-Fueled Q1 Gains as Broadcom Targets $100 Billion by 2027
10 articles · Updated · The Motley Fool · May 14
Broadcom reported fiscal Q1 revenue of $19.3 billion, up 29%, with AI semiconductor sales surging 106% to $8.4 billion and accelerating from 74% growth in the prior quarter.
That momentum underpinned Broadcom's outlook for about $22 billion in fiscal Q2 revenue and CEO Hock Tan's forecast for AI chip revenue above $100 billion in 2027, backed by a $73 billion backlog.
TSMC posted Q1 revenue of $35.9 billion, up 40.6% in U.S. dollar terms, as high-performance computing rose to 61% of sales while smartphone revenue fell 11% sequentially.
Its margins also strengthened, with gross margin at 66.2% and operating margin at 58.1%, helping management lift its full-year 2026 revenue growth forecast to more than 30%.
The results highlight a split in AI exposure: Broadcom's growth is more concentrated in hyperscaler AI demand, while TSMC's broader foundry business still faces swings in non-AI markets and Taiwan-related geopolitical risk.
As AI devours memory chips, will the resulting 'memflation' crisis cripple the PC and smartphone markets by 2027?
Can TSMC's new global fabs overcome water and power shortages to truly de-risk the world's chip supply?
Is Broadcom’s reliance on a few tech giants a greater risk than TSMC’s deep-rooted geopolitical exposure?
Broadcom’s Explosive AI Chip Growth: Q1 2026 Performance, $100B Revenue Ambition, and Future Roadmap
Overview
Broadcom is experiencing explosive growth in the AI chip market, as shown by its record Q1 2026 revenue driven by strong demand for its AI semiconductors. The company’s clean and verified results, along with strong guidance for Q2, highlight its momentum. CEO Hock Tan is confident about reaching over $100 billion in AI chip revenue by 2027, supported by substantial, multi-year orders from major hyperscaler customers and a significant AI-specific order backlog. This strong performance and deep customer commitments position Broadcom as a key player in the global AI infrastructure buildout.