Broadcom Inc. CEO Hock Tan announced that the company expects its AI chip sales to exceed $100 billion next year.
During a conference call with analysts, Tan confirmed that Broadcom has “line of sight” to reach this milestone in 2027. “We have also secured the supply chain required to achieve this.”
The news comes with the release of the company’s first-quarter earnings for fiscal year 2026.
The company forecasts AI chip revenue of $10.7 billion in Q2, a substantial climb toward an annual run rate of $100 billion. Broadcom reported $20 billion in AI sales for 2025.
In a prepared statement, Tan informed investors, “Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking. Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.”
“Consolidated revenue grew 29% year-over-year to a record $19.3 billion. Adjusted EBITDA increased 30% year-over-year to a record $13.1 billion, representing 68% of revenue. In Q2 we expect revenue growth to increase 47% year-over-year to $22.0 billion, with adjusted EBITDA of 68%,” said Kirsten Spears, CFO of Broadcom Inc. “Consistent with our commitment to return excess cash to shareholders, we returned $10.9 billion in the first quarter through $3.1 billion of cash dividends and $7.8 billion of stock repurchases.”
Broadcom shares gained around 7% in premarket trading following the announcement.
By CEO NA Editorial Staff
