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Broadcom projects AI semiconductor revenue to reach $230 billion by fiscal 2028

Broadcom reported a significant increase in AI semiconductor revenue, which rose 221% year-over-year to $16.7 billion in fiscal Q3. The company's overall revenue reached $29.6 billion, exceeding analyst expectations. Broadcom raised its AI revenue targets, now projecting $115 billion for fiscal 2027 and $230 billion for fiscal 2028. These figures surpass previous estimates, including a $180 billion projection from Citigroup analysts. The company noted that demand from its four largest AI customers currently exceeds its supply capacity. To address this, Broadcom is bringing substrate production online in Singapore in fiscal 2027 and scaling networking alongside custom compute. The company's customer base is diversifying. Anthropic is expected to become Broadcom's largest custom XPU customer in fiscal 2027, while OpenAI is projected to be its second-largest. Alphabet remains a major customer, generating tens of billions of dollars in annual revenue. Meta Platforms is also expected to receive multiple generations of custom MTIA chips through 2028.

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