Broadcom Drops 20% as Custom AI Chip Push Targets $100 Billion in 2027 Revenue
Updated
Updated · The Motley Fool · Jun 15
Broadcom Drops 20% as Custom AI Chip Push Targets $100 Billion in 2027 Revenue
1 articles · Updated · The Motley Fool · Jun 15
Summary
Broadcom is being pitched as a buying opportunity after falling about 20% from its all-time high, with the bullish case centered on its custom AI chip business rather than standard GPUs.
ASIC demand underpins that view: Broadcom helps customers design application-specific AI chips, including Alphabet’s TPU, for workloads that do not need the flexibility of Nvidia- or AMD-style GPUs.
OpenAI and Anthropic are expected to ramp custom chip production in 2027, and Broadcom says its AI semiconductor revenue could top $100 billion in fiscal 2027.
Wall Street analysts expect Broadcom’s total revenue to reach $172 billion by fiscal 2027, up from roughly $75 billion over the past 12 months.