Broadcom reported a 221% year-over-year increase in Q3 AI semiconductor revenue to $16.7 billion. CEO Hock Tan projects AI revenue will reach $115 billion in 2027. The company expects this figure to double to $230 billion by 2028. This outlook signals sustained demand for custom AI accelerators and networking hardware.
Tan addressed investors at a Goldman Sachs conference regarding the company's AI trajectory. He stated that the primary bottleneck for AI expansion is shifting from silicon supply to infrastructure readiness. Key constraints now include power availability and data center capacity.
Analysts maintain a consensus Buy rating for the stock. This optimism persists despite mixed market reactions to the company's recent near-term guidance.