Broadcom’s AI Chip Business Shows Explosive Growth
Broadcom anticipates its AI chip revenue will triple from $16.7 billion in fiscal Q3 2026 to $21.7 billion in the current quarter. The company’s custom AI processor shipments surged 3.5 times year-over-year in the last quarter alone, with major clients like Google, Meta Platforms, OpenAI, and Anthropic driving demand.
Looking forward, Broadcom projects $58 billion in AI revenue for fiscal 2026, exceeding its previous expectations, and $115 billion in fiscal 2027, with further growth expected to reach $230 billion by fiscal 2028. The company has secured the supply needed to support this anticipated rise, positioning itself as a formidable competitor to Nvidia and AMD, which reported $164 billion and $25 billion in data center revenue, respectively.
Broadcom’s forward earnings multiple of 19 is lower than Nvidia’s 25 and AMD’s 39, making it an attractive option for investors seeking both growth and value in the AI sector.
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