Key Points
Broadcom (NASDAQ: AVGO) is experiencing significant growth in its custom AI chip business, which caters to specific workloads for hyperscalers. In Q1 of fiscal 2026, Broadcom’s AI semiconductor revenue reached $8.4 billion, marking a 106% increase year-over-year, while revenue from custom AI chips surged by 140%.
CEO Hock Tan projected that AI chip revenue could exceed $100 billion by 2027, with a secured supply chain to support this growth. Broadcom’s overall revenue was $68 billion over the past 12 months, indicating the potential for substantial increases in the coming years.
