Broadcom AI Chip Revenue Doubles, Targets $100 Billion by 2027 with Meta Partnership
Broadcom's custom AI chip revenue doubled year-over-year to power hyperscaler demand and is forecast to hit $100 billion by 2027 under long-term memory supply agreements. The company is co-designing Meta's MTIA AI accelerators as hyperscalers secure multi-year chip contracts to support escalating generative AI inference workloads.
1. Surging AI Chip Revenue
Broadcom's custom AI chip business saw over 100% year-over-year revenue growth, driven by hyperscaler demand for data center inference and networking workloads. Management forecasts AI chip revenue to reach $100 billion by 2027 as manufacturing capacity and customer adoption expand.
2. Long-term Memory Supply Deals
Hyperscale cloud providers are shifting from cyclical memory procurement to multi-year agreements, securing DRAM and NAND supply from Broadcom and its partners. These contracts aim to stabilize volumes and pricing, mitigating the industry's historical boom-bust cycles.
3. Partnership with Meta on MTIA Accelerators
Broadcom is collaborating with Meta to co-design its in-house MTIA accelerator series, slated for deployment from MTIA 300 through MTIA 500 starting in 2027. The chips will offer roughly 4.5× higher HBM bandwidth and 25× more compute power to handle growing generative AI inference workloads.