Broadcom is capitalizing on skyrocketing demand for application-specific integrated circuits (ASICs) tailored to AI workloads. Having partnered with Alphabet to develop its tensor processing units, the company now counts Meta Platforms, OpenAI and other hyperscalers among its clients. Citigroup analysts project Broadcom will generate just over $50 billion in AI revenue in fiscal 2026 and $100 billion in fiscal 2027, up sharply from $20.2 billion in fiscal 2025. The fiscal 2027 forecast alone exceeds the $63.9 billion in total revenue Broadcom reported last year, underscoring the magnitude of the custom chip opportunity ahead.

Investors have often overlooked Broadcom’s strength in AI networking infrastructure. As hyperscale data centers deploy clusters with over 100,000 compute nodes, the company’s Tomahawk 6 Ethernet switches and optical components have seen record bookings. Broadcom exited fiscal 2025 with more than $10 billion in AI switch backlog and a total AI-related backlog of $73 billion, nearly half of its consolidated order book. Of that AI backlog, approximately $20 billion is non-accelerator content—lasers, transceivers and PCIe switches—highlighting the strategic importance of networking in the next phase of AI build-out.

Broadcom’s core AI semiconductor business remains a powerful growth engine. In its most recent quarter, AI semiconductor revenue rose 74% year-over-year to $6.5 billion. Management guidance points to a further surge, with AI revenue expected to double year-over-year to $8.2 billion in the current quarter. This rapid acceleration is driven by increased adoption of custom ASICs for both training and inference workloads, as enterprises and cloud providers seek more power-efficient and cost-effective alternatives to general-purpose GPUs.

With a diversified portfolio spanning custom AI chips, high-speed switches and optical networking components, Broadcom is strategically positioned to capture a significant share of global AI infrastructure spending. Its partnerships with leading cloud providers, combined with analysts’ bullish forecasts and substantial order backlogs, suggest sustained double-digit growth in AI-related revenue over the next several years, reinforcing the company’s role as a linchpin in the evolving AI ecosystem.