Hock Tan said Broadcom targets about $115B AI semiconductor revenue in FY2027 and $230B in FY2028, with customer demand exceeding that, though industrywide supply constraints in leading-edge silicon, substrates and HBM persist.
On an earnings call, Broadcom Chief Executive Hock Tan stated that the company targets AI semiconductor revenue of about $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Tan said customer demand exceeds that outlook, while pointing to industrywide delivery constraints in leading-edge silicon, substrates, and high-bandwidth memory (HBM).
Hock Tan has said Broadcom's AI semiconductor revenue, about $58 billion this year, should roughly double next year and double again the year after.
The chip designer has said it expects AI semiconductor revenue to generate $58 billion this year, which CEO Hock Tan has said should be expected to roughly double next year and double again the year after that.
Hock Tan described OpenAI's Jalapeño accelerator, co-developed with Broadcom, as just the start of a multi-generation roadmap.
just the beginning of a multi-generation roadmap.
Hock Tan told analysts that Broadcom is creating financing pools to help Anthropic and OpenAI deploy high-performance models.
Broadcom , which helps Google develop chips for AI labs, is creating financing pools to help Anthropic and OpenAI deploy high-performance models, CEO Hock Tan told analysts earlier this year.
Hock Tan said the $63 billion financing shows capital is available to fund AI compute expansion and that Broadcom is positioned to enable it.
Broadcom Chief Executive Hock Tan said the transaction showed that capital was available to finance the expansion of AI compute and that Broadcom was positioned to enable it.
Hock Tan said the $63 billion financing shows capital is available to fund rapid AI compute expansion and that Broadcom is well positioned to enable it.
Chief Executive Hock Tan said the transaction showed that capital was available to finance the rapid expansion of AI compute and that Broadcom was well positioned to enable it.
Hock Tan said AI compute demand keeps growing at an extraordinary pace and the $63B financing shows the funding can be raised.
Broadcom CEO Hock Tan said demand for AI compute continues to grow at an extraordinary pace, and that the deal shows the funding can be raised.
Hock Tan said AI compute demand keeps growing at an extraordinary pace, that the $63B financing shows capital is available to fund it, and that Broadcom is uniquely positioned to enable it.
"Fundamentally, the need for AI compute continues to grow at an extraordinary pace," Broadcom President and Chief Executive Officer Hock Tan said in a statement. "This validates that there is capital available to finance such growth and that Broadcom is uniquely positioned to enable it."
Hock Tan said AI computing demand is growing unusually fast and that the $63 billion financing shows capital is available to support that growth.
Demand for AI computing is growing at an unusually rapid pace," and "this transaction shows that capital exists to support such growth.
Hock Tan said AI compute demand keeps growing at an extraordinary pace, that the $63 billion financing shows capital is available for it, and that Broadcom is uniquely positioned to enable it.
Today's transaction underscores the power of our advanced technology and our strong conviction in the AI ecosystem. Fundamentally, the need for AI compute continues to grow at an extraordinary pace. This validates that there is capital available to finance such growth and that Broadcom is uniquely positioned to enable it.
Hock Tan said demand for Broadcom's custom AI accelerators and networking products remains very strong.
CEO Hock Tan said demand for the company's custom AI accelerators and networking remains very strong.
Hock Tan warns that many AI investors don't understand what they invest in and set extreme expectations, akin to casino gambling.
A lot of investors have no clue what they are investing in,” Tan said. They “set very extreme expectations only to find out that it’s almost like they are in a casino.
Hock Tan says enterprises are currently wasting money on tokens just trying to understand AI.
People are just wasting money, spending tokens, trying to understand (AI),
Hock Tan believes capital may be the biggest constraint on AI buildout.
What I think might be the biggest constraint is capital,
Hock Tan said industry demand for lasers far exceeds supply, and Broadcom holds a fairly substantial share of that market.
[D]emand for lasers ... is far surpassing supply out there in the industry
Hock Tan said Broadcom's demand exceeds its fiscal 2027 AI semiconductor revenue outlook and the company will work to improve supply.
Our demand actually exceeds this outlook, and we will work to improve supply
Hock Tan questioned whether shipped AI chips will be deployed on a timely basis.
Even as we ship the chips, will they be deployed on a timely basis?
Hock Tan described the fifth XPU customer as a genuine buyer on a multi-year path toward developing its own custom accelerators.
Tan declined to identify that customer, calling it "a real customer" on "a multi-year journey to their own XPUs."
Hock Tan called the $73 billion AI backlog a moving target that he expects to keep growing, without committing to precise full-year AI revenue guidance.
He called the backlog "a moving target." Fresh orders were still arriving, he said, and he expected the figure to grow, while declining to give precise full-year fiscal 2026 AI revenue guidance.