By John Ballard
Publication Date: 2026-04-06 11:40:00
Broadcom (AVGO +0.29%) is one of the most valuable semiconductor companies by market cap (currently valued at $1.5 trillion). It has been a solid chip stock to ride the artificial intelligence (AI) boom over the past few years, and CEO Hock Tan just revealed how big its opportunity could become.
Last quarter, revenue surged 29% year over year to $19.3 billion. Management expects fiscal second-quarter revenue to increase 47% year over year to $22 billion.
However, the big reveal was Tan’s updated fiscal 2027 outlook. He said Broadcom has “line of sight” to generate over $100 billion in revenue next year. This is a large business that supplies custom chips (accelerated processing units, or XPUs), networking gear (the components that connect chips), and software for data centers, but Tan emphasized that this outlook applies only to AI chips.
Image source: Getty Images.
What is baked into Broadcom’s outlook
Management bases this outlook on specific signals it is seeing from its…
