Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom's $115 Billion AI Forecast. Here's What That Means for the Stock.
Broadcom CEO Hock Tan announced that demand for AI processors is exceeding the company's previous $115 billion revenue forecast for 2027. The company expects its AI revenue to double again by 2028.
Why it matters
Broadcom's aggressive growth projections signal sustained, high-level demand for specialized AI hardware in the tech sector.
Broadcom ( AVGO +0.32% ) has emerged as an important AI processor company, albeit in a niche space. The company sells a variety of processors, but its application-specific integrated circuits (ASICs) are especially in demand right now because they can be designed for companies running specific AI models.
The need for these processors is so high that Broadcom CEO Hock Tan recently said the company's 2027 AI revenue forecast of $115 billion will likely be higher, as "demand actually exceeds this outlook." That's great news for Broadcom shareholders.
Here's what Tan said about future AI chip demand and what it means for Broadcom stock .
Broadcom had a blockbuster third quarter (which ended Aug. 2), with sales jumping 86% to $29.6 billion and non-GAAP (generally accepted accounting principles) earnings per share rising 96% to $3.32.
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