Chip designer Broadcom on Wednesday projected that its artificial intelligence chip revenue would exceed $100 billion by 2027. After the chipmaker reported better-than-expected results for the fiscal first quarter and issued a strong forecast for the current period, CEO Hock Tan said in his company’s earnings call that demand is picking up from large customers that are increasingly in need of Broadcom’s help in designing custom silicon.
“We have also secured the supply chain required to achieve this,” Tan said, regarding the 2027 sales target.
Broadcom’s target indicates surging demand for custom chips in a market dominated by Nvidia. Big tech firms like Alphabet, Microsoft, Amazon, and Meta are expected to spend at least $630 billion to build AI infrastructure this year, boosting demand for chips, servers, storage and networking equipment from companies like Broadcom.
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“Our visibility in 2027 has dramatically improved. Today, in fact, we have line of sight to achieve AI revenue from chips in excess of $100 billion in 2027,” CEO Hock Tan said on a post-earnings call.
Broadcom, which typically supplies semiconductors and infrastructure software, does not usually design entire AI chips itself. Rather, it works with clients such as Google to develop their tensor processing units (TPU) and OpenAI on their in-house custom processors. The company’s engineers help turn an early design into the physical layout of a chip that can be fabricated by manufacturers like TSMC.
“Broadcom’s guidance for the April quarter and into 2027 was very encouraging. While the company typically only guides one quarter at a time, the visibility into results more than a year out is an indication of significant growth in demand,” said D.A. Davidson analyst Gil Luria.
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Tan said Broadcom is expected to deliver 1 gigawatt’s worth of TPUs for AI startup Anthropic in 2026, with demand rising to 3 gigawatts in 2027. The company also plans to ship OpenAI’s first AI chip in 2027, and deliver over gigawatt’s worth of the chips.
Broadcom shares went up more than 5% in extended trading on Thursday after Tan’s comments.
The chip volume for Broadcom’s major customers showed that it is signing deals close to the size of those signed by major AI chip companies like Nvidia and Advanced Micro Devices (AMD).
Another revenue source for Broadcom is Meta, with Tan saying reports of slowdown in the social media company’s business are mistaken. “Meta’s custom accelerator MTIA roadmap is alive and well,” Tan said, referring to Meta’s custom chip. “We’re shipping now.”
Last month, Broadcom said that it expected to sell at least 1 million chips by 2027 based on its stacked design tech.