Broadcom Sets $100 Billion AI Chip Revenue Target and Guides $22 Billion in Q2
Broadcom CEO projects $100 billion in AI chip revenue by 2027, representing 2.7× 2025 revenue, with Q2 guidance of $22 billion implying 46.6% YoY growth and $10.7 billion from AI. The stock trades at a P/E of 80.6 near all-time highs, raising valuation sustainability questions.
1. AI Revenue Outlook
CEO Hock Tan forecasts $100 billion in AI chip revenue by 2027, exceeding 2.7 times the company’s 2025 chip revenue. Q2 guidance calls for $22 billion in sales, up 46.6% year-on-year, including $10.7 billion in AI, supported by supply chain commitments and a diversified customer base spanning Google, Meta, OpenAI and Anthropic.
2. Valuation and Execution Concerns
Broadcom’s shares trade at a price-to-earnings ratio of 80.6, close to record highs, prompting scrutiny over whether execution can validate current valuations. Investors are closely watching hyperscaler spending trends, execution risks and how Broadcom’s profitability metrics compare with peers.