Broadcom Forecasts $100B AI Chip Revenue, Secures Supply Chain Through 2028
Broadcom projects over $100 billion in AI chip revenue, driven by XPUs and networking components, and has secured key supply chain capacity through 2028. CEO warns of modest gross-margin headwinds from AI/non-AI mix and concentration risk from a limited customer base could affect future revenue.
1. $100B AI Chip Revenue Forecast
Broadcom projects more than $100 billion in AI chip revenue, combining its XPU accelerators and high-performance networking components, driven by robust inference demand.
2. Margin Impact and Customer Concentration Risks
Management expects modest gross-margin headwinds from the shift in product mix between AI and non-AI offerings and flags revenue risk due to over-reliance on a handful of major customers.
3. AI Networking Growth
AI networking revenue is rising on strong demand for the Tomahawk 6 switch and 1.6 terabit DSPs, with next-generation Tomahawk 7 products slated to sustain leadership in data center networking.
4. Supply Chain Visibility Through 2028
Broadcom secured critical materials like T-glass substrates well into 2028 and strengthened supplier partnerships to ensure the capacity needed for its AI expansion roadmap.