Broadcom Shares Climb After CEO Says AI Chip Revenue To Exceed $100 Billion In 2027

• Broadcom’s AI semiconductor revenue grew 106% year on year to $8.4 billion, with semiconductor revenue expected to grow 76% to $14.8 billion in the next quarter. 
• Broadcom’s partnerships with Google and Anthropic are expected to grow steadily, the CEO confirmed. 
• The CEO also highlighted the company’s deal with OpenAI, saying the AI startup plans to start shipping Broadcom chips by 2027 to clock more than one gigawatt of capacity.

Shares of Broadcom Inc. climbed more than 4.6% in Wednesday’s post-market hours on comments from CEO Hock Tan about the company’s strong outlook, driven by higher semiconductor demand.

In a call with investors, Tan said that Broadcom (AVGO) expects AI revenue from chips to be in excess of $100 billion in 2027.

The company also posted first-quarter (Q1) 2026 earnings results that marginally beat Wall Street expectations. Quarterly revenue increased 29% to $19.31 billion for the quarter, compared with Wall Street's expectation of $19.13 billion, according to data from Fiscal.ai.

Broadcom (AVGO) also posted a diluted earnings per share of $2.05 for the first quarter, compared to analysts’ estimate of $2.02.

Growth Profile

Meanwhile, for the second-quarter (Q2) of 2026, the company provided a revenue guidance of about $22 billion, ahead of Street expectations of $20.39 billion.

"Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions," said CEO Hock Tan, adding that the growth came from robust demand for custom artificial intelligence accelerators and AI networking.

CEO Tan said that better-than-expected growth in AI semiconductors bolstered the company’s results, with the momentum expected to accelerate amid custom AI hitting its next phase of deployment.

The company’s AI semiconductor revenue grew 106% year on year to $8.4 billion, with semiconductor revenue expected to grow 76% YoY to $14.8 billion in the next quarter.

“The ramp of custom AI accelerators across all our five customers is progressing very well,” Tan said to investors.

Customer Snapshot

Broadcom’s partnerships with Google and Anthropic are expected to grow steadily, the CEO confirmed.  For Google, the company’s demand for the seventh-generation Ironwood GPU in 2027 and beyond is likely to be strong. Meanwhile, Anthropic’s TPU compute demand is expected to surge over three gigawatts of compute.

Tan also refuted recent analyst reports that raised concerns over Broadcom’s custom accelerator and media roadmap, saying it “is alive and well.” He added that for the next-generation Xbox, the company will scale to multiple gigawatts.

About OpenAI, Tan said the company plans to start shipping Broadcom chips by 2027 to clock more than one gigawatt of capacity.

The CEO said that for the company’s other customers, shipments for the year are expected to be strong, adding that they are likely to "more than double in 2027.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AVGO shares jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

One bullish user cheered Tan’s remarks, adding that the company’s shares would hit $500 in 2027.

Shares of AVGO have climbed by over 69% in the past year.

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