Broadcom projects $100 billion in AI chip revenue by 2027

Broadcom AI revenue on track to double in 2027

Semiconductor company Broadcom is reporting extraordinary growth in its AI chip business. In the first quarter ending February 1, AI revenue more than doubled to $8.4 billion. Management expects the momentum to continue, projecting AI chip revenue of at least $100 billion in 2027.

Research firm Morningstar suggests even those projections may be conservative. Broadcom holds a dominant position in AI application-specific integrated circuits, a market share expected to reach 60% by next year according to CounterPoint Research.

The logic is straightforward. As Meta, Microsoft, Amazon, and Alphabet collectively pour $650 billion into AI infrastructure this year, Broadcom can sell processors to all of them regardless of who emerges on top. The company essentially benefits from the entire industry spending up, rather than betting on any single winner.

The one risk worth monitoring is a potential slowdown in data center spending. Bears have been calling for it, but until there is concrete evidence of a pullback, Broadcom's position looks as strong as ever.