Broadcom has increased its revenue projections for AI chips through 2028, highlighting robust infrastructure investments from major technology firms. Despite this improved outlook, the company’s shares have underperformed sector benchmarks as investors weigh competitive pressures and AI spending trends.
For fiscal 2027, Broadcom expects revenue from AI chips to reach approximately $115 billion, raising its estimate from over $100 billion. The company projects that figure will double to nearly $230 billion in fiscal 2028, supported by continued commitments from clients such as Meta, Google, and OpenAI. In the last quarter, bookings for AI chips at Broadcom surpassed $30 billion, reflecting accelerating demand from large-scale AI deployments.
CEO Hock Tan addressed analysts, stating that Broadcom has secured sufficient supply to meet next year’s projected volume increases, with strong visibility into ongoing infrastructure rollouts. Tan noted anticipated shipments include Google’s Ironwood tensor processing units for Anthropic and TPU 8i chips for Google, as well as continued production for OpenAI and Meta custom accelerators.
Financial results showed AI chip revenue more than tripled in the third quarter to $16.7 billion, helping drive total revenue to $29.59 billion and exceeding consensus estimates. Adjusted profit reached $3.32 per share, also ahead of forecasts. Overall company revenue surged by 86% year-over-year, and net income climbed to $13.09 billion from $4.14 billion in the prior year.
For the upcoming fiscal fourth quarter, Broadcom guided for roughly $34.8 billion in revenue, slightly below analyst expectations compiled by LSEG. Semiconductor revenue outpaced projections, while infrastructure software sales came in modestly under consensus.
Despite substantial gains since 2022, Broadcom’s stock has advanced about 6% so far in 2026—lagging behind both competitors and the broader S&P 500, which is up 12% this year. The slower share performance comes as the company faces heightened competition, including Marvell’s recent chip agreement with Google, and ongoing investor scrutiny regarding the returns on sizable AI investments.
