Broadcom said it expects artificial intelligence chip sales to exceed $100 billion by 2027, signaling an aggressive push into a market dominated by Nvidia. Shares rose about 7% in premarket trading following the announcement.
The company said demand is being driven by large-scale investments in AI infrastructure from technology firms including Alphabet, Microsoft, Amazon, and Meta Platforms, which are collectively expected to spend more than $600 billion this year on AI data centers and computing capacity.
Broadcom expects to deliver around three gigawatts of tensor processing units to Anthropic by 2027 and over one gigawatt of custom AI chips for OpenAI during the same period. These large-scale deployments place Broadcom closer to the level of recent AI hardware deals secured by Nvidia and Advanced Micro Devices.
The company projected second-quarter revenue of about $22 billion, above analyst expectations of $20.56 billion, and announced a $10 billion share repurchase program through the end of the year.
