Broadcom will soon deploy multiple gigawatts worth of custom accelerators at Meta, OpenAI, and Anthropic, a feat it says shows AI companies and hyperscalers can\u2019t successfully develop and deploy their own silicon any time soon.<\/p>\n
Speaking on the company\u2019s Q1 2026 earnings call, CEO Hock Tan pointed to 106 percent year-over-year growth for AI-related silicon, which brought in $8.4 billion of revenue for the quarter.<\/p>\n
\u201cOur custom accelerator business is progressing very well across five customers,\u201d the CEO said, adding that he expects Google will display \u201ceven stronger demand\u201d for Broadcom silicon as it deploys a next-generation TPU. Anthropic will soon implement one gigawatt of Broadcom-baked TPUs, and Tan said the AI company plans a three-gigawatt deployment in 2027. Meta will install \u201cmultiple gigawatts\u201d of Broadcom\u2019s XPU accelerators \u201cin 2027 and beyond.\u201d<\/p>\n
The CEO said OpenAI will deploy \u201cover one gigawatt of compute capacity\u201d based on custom XPUs in 2027.<\/p>\n
Tan said Broadcom has already secured the supplies it needs to make all that kit \u2013 including high-bandwidth memory \u2013 and satisfy demand until 2028. And he predicted that Broadcom will win similar deals for years to come, because hyperscalers and AI upstarts can\u2019t match its ability to design and deliver custom silicon.<\/p>\n
\u201cThey face tremendous challenges,\u201d he said, in terms of attracting silicon design talent capable of creating chips tuned to particular workloads, managing the production process, developing packaging expertise, and then networking their chips.<\/p>\n
Tan said homebrew chipmaking efforts must create chips that are competitive with not just NVIDIA, but \u201call the other LLM platform players that you are competing against.\u201d He can\u2019t see that happening at any hyperscaler or AI company \u201cfor many years to come.\u201d<\/p>\n
\u201cAnybody can design a chip in a lab that works well,\u201d he said. \u201cCan you produce 100,000 of those chips quickly, at yields that you can afford? And we do not see too many players in the world that can do that.\u201d<\/p>\n
Broadcom\u2019s AI-relevant networking business is also booming, having improved revenue 60 percent year-over-year. Tan said the company will debut a seventh-generation Tomahawk switching chip next year that will double the current model\u2019s performance, and will do the same for its direct copper interconnects meaning customers won\u2019t need to contemplate a move to optical networking.<\/p>\n
Tan therefore predicted Broadcom has \u201cline of sight\u201d to win $100 billion or more in revenue from AI chips alone in 2027.<\/p>\n
Broadcom\u2019s overall semiconductor business recorded $12.5 billion revenue for the quarter, up 53 percent year-over-year. Revenue for non-AI chips was steady at $4.1 billion.<\/p>\n
Software propped up by VMware<\/p>\n
Broadcom\u2019s software infrastructure business \u2013 the combined CA, Symantec Enterprise, and VMware \u2013 delivered one percent revenue growth to land at $6.8 billion. VMware revenue grew 13 percent, suggesting customers weren\u2019t wild about CA and Symantec.<\/p>\n
Tan was bullish about VMware\u2019s prospects, saying its flagship Cloud Foundation private cloud suite is an \u201cessential layer\u201d of infrastructure for enterprise AI deployments.<\/p>\n
\u201cVCF cannot be disintermediated or replaced,\u201d he said. \u201cAI will create the need for more VMware, not less.\u201d<\/p>\n
And as if to prove it, Broadcom forecast Q2 software revenue will reach $7.2 billion, representing nine percent growth. The company predicted overall Q2 revenue will hit $22 billion, up 47 percent year-over-year.<\/p>\n
Investors appear to have liked those numbers, and the announcement of a new share buyback scheme, as Broadcom stock jumped almost five percent in after-hours trading. \u00ae<\/p>\n","protected":false},"excerpt":{"rendered":"Broadcom will soon deploy multiple gigawatts worth of custom accelerators at Meta, OpenAI, and Anthropic, a feat it…\n","protected":false},"author":2,"featured_media":458871,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-458870","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/458870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=458870"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/458870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/458871"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=458870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=458870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=458870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}