Broadcom Sees 5% Revenue Upgrade, EPS Raised and AI TAM Forecast to $1.4T
A securities analyst raised his 2030 AI data-center TAM to $1.4 trillion and forecasts 100% AI system growth for 2026. He lifted Broadcom’s revenue outlook 5% in fiscal 2026 and 2% in 2027-28, bumped EPS up to 4% and trimmed gross margin slightly on a higher ASIC/compute mix.
1. Analyst Increases AI Data-Center TAM
A securities analyst lifted the total addressable market for AI data-center systems to $1.4 trillion by 2030, up from $1.2 trillion, and predicts 100% year-over-year AI system growth in 2026 as cloud capex accelerates.
2. Broadcom Revenue and EPS Upgrades
He increased Broadcom’s revenue estimates by 5% for fiscal 2026 and by 2% for fiscal 2027–28, while boosting EPS forecasts by 4%, 2% and 1% for those years, reflecting stronger demand for ASIC and compute products.
3. Margin and Supply Considerations
The analyst noted that higher Application-Specific Integrated Circuit and compute component mix will slightly pressure gross margins, but expects vendors to pass increased memory costs to customers, preserving profit levels as volumes rise.