Chief Executive Hock Tan announced an aggressive expansion of the company's long-term roadmap for the next three fiscal cycles. The projected revenue ramp for AI semiconductors starts with a revised 2026 guidance of $58 billion, up from $56 billion, before climbing to $115 billion in 2027 and $230 billion in 2028. This trajectory represents a fourfold increase in AI-specific sales over a two-year period, which Tan says is supported by secured supply.
Shares of Broadcom fell 5% after fourth-quarter revenue guidance of $34.8 billion missed analyst expectations of $35.05 billion, despite a third-quarter revenue beat of $29.6 billion. Third-quarter AI semiconductor revenue grew 221% year-over-year to $16.7 billion, fueled by early production shipments of Google's TPU v8i and the first custom accelerator for OpenAI. The company aims for earnings per share to exceed $30 by the 2028 fiscal year.
The firm is currently scaling shipments of Meta's custom MTIA accelerator and projects that Anthropic will become its largest customer for custom XPU chips by 2027. Broadcom plans to deliver three generations of accelerators to Meta by the end of 2027, while OpenAI's Jalapeño chip is on track fo
Key sources
- SOURCE@alphasenseinc“AI semiconductor revenue of $16.7 billion grew 221% year-over-year”x.com
- SOURCE@firstsquawk“RAISING ITS FY2026 AI REVENUE GUIDANCE TO $58 BLN FROM $56 BLN, UP 186% YEAR-ON-YEAR”x.com
- SUPPORT@firstsquawk“BEGAN PRODUCTION SHIPMENTS OF THE NEXT-GENERATION TPU VERSION 8I FOR GOOGLE”x.com
- SUPPORT@firstsquawk“OPENAI'S JALAPENO IS ON TRACK FOR a PLANNED DEPLOYMENT OF 1.3 GIGAWATTS IN 2027”x.com
- SOURCE@firstsquawk“ON TARGET TO EXCEED EPS OF $30 IN FY2028”x.com
- SUPPORT@cnbc“stock drops 5% as weak guidance overshadows earnings beat”x.com
- SOURCE@firstadopter“Is $115 billion "well above" $100 billion?”x.com
- SUPPORT@shanumathew93“Broadcom estimates frontier labs can generate ~$30B of ARR per deployed GW”x.com