Google’s $175–$185B CapEx Surge and Broadcom’s 52% AI Revenue Growth Forecast
Broadcom shares are down 23% since its Dec. 11 earnings release despite Google’s 2026 CapEx guidance of $175–$185 billion (97% increase) and Meta’s $115–$135 billion (73% increase), signaling stronger AI chip demand. Wall Street forecasts Broadcom AI semiconductor revenue doubling with 52% growth in fiscal 2026 and 39% in 2027.
1. Share Performance
Broadcom shares have fallen 23% since its Dec. 11 earnings report and are down 10% year-to-date as of Feb. 5, trading at a forward P/E near 30x, about 19% below its 52-week average.
2. Google CapEx Guidance
Google expects $175 billion–$185 billion in capital expenditures for 2026, a 97% increase from $91.4 billion in 2025, highlighting accelerating AI infrastructure spend that could boost Broadcom’s chipset sales.
3. Meta CapEx Increase
Meta forecasts $115 billion–$135 billion in 2026 CapEx, up 73% year-over-year, and plans to extend Broadcom’s Meta Training and Inference Accelerator (MTIA) chips to model training, potentially raising long-term demand.
4. Revenue Growth Estimates
Analysts project Broadcom’s AI semiconductor revenue will double year-over-year, with 52% growth in fiscal 2026 and 39% growth in 2027, supporting a consensus price target implying roughly 41% upside.