By Ghazal Ahmed
Publication Date: 2026-09-07 21:11:00
Big Tech’s appetite for AI infrastructure isn’t being sated anytime soon, and Broadcom Inc. (NASDAQ:AVGO) is proof of that. On Wednesday, the custom AI chipmaker said it now expects AI chip revenue of about $115 billion in the fiscal year ending October 2027, up from a prior forecast of over $100 billion. Broadcom also expects this revenue to double to roughly $230 billion in fiscal 2028.
Broadcom’s revenue outlook is evidence that hyperscalers no longer want costly processors only. Rather, they are also interested in suppliers such as Broadcom who provide both the custom chips and the networking components. Broadcom’s forecasts are therefore a reflection of continued spending by Big Tech on alternatives to NVIDIA Corporation (NASDAQ:NVDA)’s GPUs, as well as components that complement them.
In response to this forecast, KeyBanc analyst John Vinh reiterated an Overweight rating and $575.00 price target on Broadcom.
