Broadcom projects AI revenue above $100 billion by end of 2026
Updated
Updated · The Motley Fool · May 5
Broadcom projects AI revenue above $100 billion by end of 2026
11 articles · Updated · The Motley Fool · May 5
The chipmaker said its AI business generated $20 billion in 2025, with growth driven by deals with Alphabet, Meta, Anthropic and OpenAI.
Broadcom is expanding through custom AI chips, or XPUs, tailored to customers, offering cost and efficiency advantages over Nvidia's more standardised GPU approach.
The forecast implies a major shift in Broadcom's business mix, as total company revenue was $63.8 billion in 2025, while investors weigh strong growth against a high valuation.
As AI's power demand soars, is the electrical grid the real bottleneck for Broadcom's ambitious growth?
Can Broadcom's custom hardware strategy outmaneuver the deep software moat built by industry-leader Nvidia?
Are tech giants escaping Nvidia only to become dependent on Broadcom's custom chip designs?
How Broadcom’s Custom AI Chips and Networking Power a $100 Billion Revenue Ambition by 2027
Overview
Broadcom delivered strong Q1 2026 results with $19.31 billion in revenue, driven by a 105% year-over-year surge in AI semiconductor sales to $8.4 billion. CEO Hock Tan projects AI revenue to exceed $100 billion by 2027, supported by a $73 billion committed backlog and secured supply chain through 2028. Broadcom’s growth is fueled by deep partnerships with hyperscalers like Google and Meta, developing custom AI accelerators and networking chips that offer an alternative to Nvidia’s GPUs. To meet demand, Broadcom plans to scale production to 9-10 gigawatts by 2027, leveraging advanced manufacturing with TSMC. Despite risks like customer concentration and supply bottlenecks, Broadcom’s strong financials and full-stack silicon approach position it as a key player in the evolving AI infrastructure market.