Broadcom Projects $100B AI Chip Sales by 2027 as AVGO Shares Rally
Broadcom CEO Hock Tan announced ambitious projections for AI chip sales, forecasting $100 billion by 2027 during Wednesday's earnings call. The statement propelled AVGO shares up 4.2%, building on the company's $20 billion AI revenue in 2025. Tan emphasized secured supply chains and "line of sight" visibility for this growth trajectory.
The AI chip sector, dominated by Nvidia, now sees Broadcom emerging as a Wall Street favorite. Despite Q2 earnings narrowly beating estimates at $2.0 adjusted EPS, the market responded enthusiastically to Tan's long-term vision. This optimism mirrors Nvidia CEO Jensen Huang's recent bullish software forecasts, suggesting converging confidence among semiconductor leaders about AI's explosive potential.
Industry observers note the $100 billion projection represents a quantum leap from Broadcom's current $10.7 billion quarterly AI revenue run rate. The forecast assumes sustained demand for AI infrastructure across cloud providers and enterprises transitioning to agentic AI systems.