Broadcom targets $100 billion in AI semiconductor revenue by 2027

Broadcom CEO Hock Tan has reaffirmed the company’s forecast that AI semiconductor revenue will exceed $100 billion by fiscal year 2027. This target follows a period of rapid growth, with AI semiconductor revenue reaching $10.8 billion in the fiscal second quarter of 2026, representing a 143% year-over-year increase.

Tan noted that the company’s AI business is driven by six core custom-chip customers. Identified clients include Alphabet’s Google unit, Meta Platforms, Anthropic, and OpenAI. Additionally, two unnamed customers have placed purchase orders totaling $6 billion, with shipments expected to begin late this year and accelerate into 2027.

In its fiscal second quarter, Broadcom reported total revenue of $22.2 billion, a 48% increase year-over-year. Semiconductor solutions revenue rose 79% to $15 billion, while free cash flow reached $10.3 billion.