Broadcom expects its AI business to generate more than $100 billion in fiscal 2027 as demand for networking products and custom AI accelerators surges. CEO Hock Tan said the company will prioritize organic AI growth over acquisitions after shares fell on a subdued forecast.
CEO Hock Tan said at a tech conference in San Francisco that Broadcom will shift focus away from acquisitions toward organic AI expansion, driven by rising demand for AI infrastructure.
Broadcom expects its AI business to exceed $100 billion in sales for fiscal 2027, fueled by strong demand for networking products and custom accelerators used in AI model development and deployment.
The company historically grew through acquisitions—purchasing VMware, Symantec Enterprise Security and CA Technologies—but management now views internal AI growth as a more attractive value driver.
Broadcom shares dipped after its latest forecast disappointed investors, prompting management to emphasize fundamentals, value creation and customer needs over short-term stock performance.
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