Broadcom forecasts strong AI chip sales over next two years

Sep 2, 2026

Broadcom Inc. announced a major boost to its artificial intelligence outlook on September 2, 2026, forecasting AI chip revenue of $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Driven by custom chip partnerships with Google, Meta, and OpenAI, the company's Q3 AI chip sales tripled to $16.7 billion, beating overall revenue estimates at $29.59 billion. Despite securing massive multi-gigawatt infrastructure commitments, Broadcom's Q4 revenue forecast of $34.8 billion fell slightly short of Wall Street expectations, causing shares to dip in extended trading.

AI chip revenue forecast

▪Broadcom Inc. projected that its artificial intelligence chip revenue will double from its fiscal 2027 forecast to approximately $230 billion in fiscal year 2028
▪Broadcom Inc. Chief Executive Officer Hock Tan stated that the company is on track to exceed earnings of $30 per share in fiscal year 2028, outpacing the Wall Street consensus estimate of $25.86 per share
▪Broadcom Inc. forecast that its artificial intelligence chip revenue will reach approximately $115 billion in fiscal year 2027, raising its prior projection of over $100 billion

Custom chip partnerships

▪OpenAI is preparing to tape out its second-generation custom chip and is planning a third version in collaboration with Broadcom Inc.
▪Broadcom Inc. is designing and shipping custom artificial intelligence chips for major technology companies including Meta Platforms Inc., Alphabet Inc.'s Google, and OpenAI
▪Broadcom Inc. Chief Executive Officer Hock Tan announced plans to accelerate shipments of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google

Infrastructure deployment commitments

▪Broadcom Inc. is planning a 1.3 gigawatt deployment of the Jalapeno chip for OpenAI in 2027, with a line of sight of over 5 gigawatts for the Jalapeno and its second-generation successor
▪Broadcom Inc. has secured committed capacity and visibility into artificial intelligence infrastructure deployments through 2028, including over 10 gigawatts for Anthropic, over 5 gigawatts for OpenAI, and 3 gigawatts for Meta Platforms Inc.
▪Broadcom Inc. expects Anthropic to deploy 5 gigawatts of TPU 8i chips in 2027, with a line of sight to deliver an additional 10 gigawatts

Q3 2026 financial results

▪Broadcom Inc. reported adjusted earnings of $3.32 per share for the fiscal third quarter of 2026, exceeding Wall Street expectations of $3.24 per share
▪Broadcom Inc.'s semiconductor revenue, driven by artificial intelligence chip sales, more than tripled to $16.7 billion during the fiscal third quarter of 2026
▪Broadcom Inc. forecast fiscal fourth-quarter revenue of approximately $34.8 billion, falling slightly below the average analyst estimate of $35.03 billion
▪For the fiscal third quarter of 2026, Broadcom Inc. reported total revenue of $29.59 billion, beating the average analyst estimate of $29.36 billion

Stock market performance

▪As of September 2, 2026, Broadcom Inc. shares had gained approximately 6% in 2026, underperforming the S&P 500 index's 12% gain over the same period
▪Broadcom Inc. shares fell over 1% in extended trading on September 2, 2026, following the release of its quarterly earnings report and future outlook