Superpower Daily
Meta Drops Token Counts From Reviews While Employees Test HatchLlamaIndex and Kaggle Launch a Document Benchmark for Cost and...Mostik Links AI Models Through Their Weights, Claiming a 20x Co...Lyte Raises $165M at $1.6B Valuation for Robot PerceptionAbliteration Removes Refusal Mechanisms for Offensive Cyber WorkNew Mexico Lets Districts Seek Approval to Leave K-2 AI Reading...Meta Drops Token Counts From Reviews While Employees Test HatchLlamaIndex and Kaggle Launch a Document Benchmark for Cost and...Mostik Links AI Models Through Their Weights, Claiming a 20x Co...Lyte Raises $165M at $1.6B Valuation for Robot PerceptionAbliteration Removes Refusal Mechanisms for Offensive Cyber WorkNew Mexico Lets Districts Seek Approval to Leave K-2 AI Reading...
Infrastructurepublished

Broadcom Forecasts $230 Billion in AI Chip Revenue for Fiscal 2028

The long-range target would put Broadcom on a far larger AI-chip trajectory. Its fourth-quarter guidance is the next concrete measure of whether that momentum continues.

By 2 min read
Broadcom Forecasts $230 Billion in AI Chip Revenue for Fiscal 2028
Broadcom Forecasts $230 Billion in AI Chip Revenue for Fiscal 2028
Sign in to save and react

Listen to this story

The audio brief

About 1:35
0:001:35
Read transcript
Broadcom expects its AI-semiconductor revenue to reach $21.7 billion in the current quarter, a sharp step up from the $16.7 billion it delivered in the completed fiscal third quarter. That near-term guide is the first concrete test of a much larger ambition: CEO Hock Tan says Broadcom could reach about $115 billion in AI-chip revenue in fiscal 2027, and $230 billion in fiscal 2028. He also projects more than $30 in earnings per share in 2028. The recent momentum is substantial. Third-quarter AI-semiconductor revenue rose 221 percent from a year earlier and 54 percent from the previous quarter. Tan described demand for Broadcom’s custom AI accelerators and networking products as very strong. But the historical results and the long-range targets are different things. The $16.7 billion is completed sales; the 2027 and 2028 figures are forecasts. The company’s fourth-quarter outlook also calls for $34.8 billion in total revenue, with the quarter expected to end November first. That trajectory could position Broadcom to challenge Nvidia in AI chips, particularly around custom accelerators and networking. But it is not evidence that Nvidia’s market share has already shifted. Broadcom says results could be affected by customer timing and demand, outsourced manufacturing, supplier limits, and the difficulty of planning capacity. The key question is whether the $21.7 billion guide becomes delivered revenue before the much bigger 2028 promise comes into focus.

Story brief

3 key points

Broadcom’s AI business is scaling rapidly, but its biggest claims remain unproven targets. The company delivered $16.7 billion in AI-semiconductor revenue in fiscal Q3, then guided to $21.7 billion for fiscal Q4, while CEO Hock Tan projected $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Those figures could strengthen Broadcom’s position against Nvidia, particularly in custom accelerators and...

  1. 01

    AI-semiconductor revenue rose 221% year over year and 54% sequentially in fiscal Q3.

  2. 02

    Fiscal Q4 guidance calls for $21.7 billion in AI-semiconductor revenue and $34.8 billion in total revenue.

  3. 03

    Tan also targets more than $30 in fiscal 2028 earnings per share.

Broadcom CEO Hock Tan forecast that the company’s AI-chip revenue will reach about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. The targets raise the prospect of a stronger competitive challenge to Nvidia, but the next evidence point is much closer: Broadcom’s $21.7 billion AI-semiconductor revenue guide for the current quarter.

A delivered quarter versus an ambitious forecast

Broadcom reported $16.7 billion in AI semiconductor revenue in its fiscal third quarter, up 221% from a year earlier and 54% from the prior quarter. Tan characterized demand for the company’s custom AI accelerators and networking products as very strong. Those are completed sales; the fiscal 2027 and 2028 figures are forward-looking targets.

One competitive implication, not a market-share result

Bloomberg said the forecast could help position Broadcom to challenge Nvidia’s dominance in the AI-chip market. That is a prospective competitive interpretation, not evidence that market share has already shifted. Broadcom also said it is on track to exceed $30 in earnings per share in fiscal 2028, a second long-range objective alongside the AI-chip revenue target.

Guidance has nearer risks than the 2028 goal

For fiscal Q4, Broadcom forecast approximately $34.8 billion in total revenue, alongside its AI-semiconductor guide. The quarter is expected to end November 1. Broadcom says the outlook is an estimate based on current business trends and conditions, and that actual results may vary materially.

Risks Broadcom identifies for delivery

  • The timing and volume of demand from significant customers may fluctuate.
  • The company cites risks around estimating demand and adjusting manufacturing and supply-chain capacity.
  • Broadcom also identifies reliance on contract manufacturing, outsourced supply chains, limited suppliers and competitive performance as risks.

Sources

  1. bloomberg.comBroadcom Predicts Surge in AI Chip Sales Over Next Two Years
  2. investors.broadcom.comBroadcom Inc. Announces Third Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend | Broadcom Inc.

Related coverage

Continue reading