{"id":834731,"date":"2026-09-03T02:06:11","date_gmt":"2026-09-03T02:06:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/834731\/"},"modified":"2026-09-03T02:06:11","modified_gmt":"2026-09-03T02:06:11","slug":"broadcom-raises-ai-chip-forecast-as-big-tech-keeps-writing-bigger-checks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/834731\/","title":{"rendered":"Broadcom raises AI chip forecast as Big Tech keeps writing bigger checks"},"content":{"rendered":"

Broadcom lifts fiscal 2027 AI chip revenue forecast to about $115 billion from $100 billionCompany expects AI chip revenue to double to roughly $230 billion in fiscal 2028Third-quarter AI chip sales \u200bmore than triple to $16.7 billion, helping revenue beat estimatesSept 2 (Reuters) – Broadcom (AVGO.O), opens new tab<\/a> on Wednesday forecast strong AI chip sales for the next two years, offering fresh evidence that Big Tech’s appetite for AI infrastructure remains undiminished as investors \u200bscrutinize returns on massive spending.<\/p>\n

Shares of the Palo Alto, California-based company were down \u200bover 1% in extended trading, recouping some earlier losses.<\/p>\n

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They have gained about \u20606% this year, significantly underperforming rivals and the broader semiconductor index (.SOX), opens new tab<\/a>, as AI spending \u200bconcerns and increased competition persist, including Marvell’s recent custom chip deal<\/a> with Google.Broadcom, whose custom AI \u200bchips are used by companies including Meta Platforms<\/a>(META.O), opens new tab<\/a>, Alphabet’s Google<\/a>(GOOGL.O), opens new tab<\/a> and OpenAI<\/a>, said it now expects AI chip revenue of about $115 billion in the fiscal year ending October 2027, up from a prior forecast of over $100 billion. The \u200bcompany expects that to double to roughly $230 billion in fiscal 2028.The outlook highlights how \u200bAI spending is broadening beyond Nvidia’s (NVDA.O), opens new tab<\/a> costly processors, benefiting suppliers such as Broadcom that provide both custom chips \u200cand the \u2060networking components that tie AI systems together. As Big Tech races to build AI infrastructure<\/a>, bookings for Broadcom’s AI chips topped $30 billion last quarter alone.<\/p>\n

CEO Hock Tan told analysts Broadcom has secured enough supply to support the higher forecast for next year, while customer demand continues \u200bto mount. He \u200bsaid the company has \u2060visibility into additional AI infrastructure deployments through 2028, including more than 10 gigawatts for Anthropic, over 5 GW for OpenAI and 3 \u200bGW for Meta.<\/p>\n

“That is committed capacity, not aspiration, and it closes \u200bmost of \u2060the gap to what the market wanted,” said Patrick Moorhead, CEO of analyst firm Moor Insights & Strategy.<\/p>\n

Fourth-quarter revenue is expected to be about $34.8 billion, below analysts’ average estimate of $35.03 billion, according to data \u2060compiled by \u200bLSEG.<\/p>\n

AI chip sales more than tripled to $16.7 billion in \u200bthe third quarter, lifting Broadcom’s total revenue to $29.59 billion, which beat estimates of $29.36 billion. Adjusted profit came in at $3.32 \u200bper share, compared with estimates of $3.24.<\/p>\n

Reporting by Anhata Rooprai in Bengaluru; Editing by Joyjeet Das<\/p>\n

Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n

Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Broadcom lifts fiscal 2027 AI chip revenue forecast to about $115 billion from $100 billionCompany expects AI chip…\n","protected":false},"author":2,"featured_media":834732,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,182548,184369,184321,181,507,3995,184327,182526,89749,182527,10211,184747,183332,182530,182539,183091,184325,184328,182531,189859,5968,184753,184365,184366,182549,183075,184748,184749,183078,183338,192359,205211,205203,7618,155973,183081,353306,183082,183083,184381,183084,172,74,183339,26311,182551,182550,25],"class_list":["post-834731","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-amers","tag-anlins","tag-arti","tag-artificial-intelligence","tag-artificialintelligence","tag-asia","tag-asxpac","tag-bact","tag-biz","tag-blr","tag-chip","tag-chip1","tag-cmpelc","tag-cmpny","tag-destousbsm","tag-destoustcm","tag-easia","tag-emrg","tag-gen","tag-graphc","tag-hot","tag-kr","tag-mtgfx","tag-mtpix","tag-namer","tag-netsv","tag-phne","tag-phne1","tag-publ","tag-pxp","tag-res","tag-resf","tag-rulesresults","tag-sci","tag-semi","tag-socmed","tag-sofent","tag-sofw","tag-srchen","tag-stx","tag-swit","tag-tech","tag-technology","tag-teeq","tag-tmt","tag-topcmb","tag-topnws","tag-us"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/834731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=834731"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/834731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/834732"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=834731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=834731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=834731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}