Broadcom’s AI ASIC Deals Propel Revenue From $20B to $100B by 2027
Broadcom is securing $21 billion of TPU orders for Anthropic this year and signed custom AI accelerator deals with OpenAI valued around $350 billion. Citigroup projects Broadcom’s AI revenue to jump from $20 billion last fiscal year to over $50 billion this year and reach $100 billion by fiscal 2027, underpinning its semiconductor growth.
1. Broadcom’s Custom AI Chip Business Rockets with 100% Q1 Growth
Broadcom reported that its custom AI accelerator chip shipments grew by 100% year over year in the first quarter, driven by strong demand from hyperscale cloud providers. The company’s solutions now support data center builds capable of up to 10 gigawatts of compute power, a project valued at approximately $350 billion based on prevailing GPU pricing benchmarks. Broadcom’s gross margins on its ASIC and IP-licensing businesses remained above 64%, underscoring the profitability of its AI chip unit even as production scales rapidly to meet customer commitments.
2. AI Revenue Could Surge to $100 Billion by Fiscal 2027, Citigroup Forecasts
According to Citigroup analysts, Broadcom’s AI-related revenue is expected to climb from about $20 billion in the last fiscal year to over $50 billion in the current fiscal year—an increase of more than 150%. By fiscal 2027, the bank projects AI revenue could reach $100 billion, driven by ongoing orders from Alphabet for TPUs, recent contracts with OpenAI and Apple, and expanding engagements with Meta Platforms and ByteDance. This growth opportunity is set against a total company revenue base of $63.9 billion in fiscal 2025, suggesting AI could account for the majority of Broadcom’s top-line expansion over the next two years.