Broadcom Projects AI Chip Revenue Above $100 Billion by 2027

Broadcom Highlights AI Growth Outlook and Earnings Momentum

Broadcom (AVGO) reported strong quarterly results, with performance primarily supported by AI infrastructure investment. Following the earnings release and conference call on March 4, 2026, the company’s shares rose 1.18% to $317.53.

On the earnings call, CEO Hock Tan stated that Broadcom sees its AI chip revenue surpassing $100 billion in 2027. This outlook is based on continued growth in demand for custom silicon (XPUs) used as AI accelerators by hyperscale cloud customers. The company’s custom AI solutions are designed for major cloud clients including Google, Meta, and Apple.

In addition to custom XPUs, Broadcom reported strong demand for its networking chips used in AI data centers. These products support the high-bandwidth connectivity required for large-scale AI workloads and form a key part of the company’s AI-related revenue.

Analysts acknowledged the strength of the latest earnings but also noted that some investors remain concerned about the return on investment (ROI) from elevated AI spending. The focus on ROI reflects broader market scrutiny of how increased capital expenditure on AI infrastructure will translate into long-term profitability.

Tech Sector Advances as AI-Linked Names Gain

Broadcom’s gains occurred alongside a broader rally in technology and growth-oriented stocks. The NASDAQ rose 1.29% to 22,807.48.

Among notable movers, Nvidia (NVDA) climbed 1.66% to $183.04 with 177.73 million shares traded. Other large advances included MicroStrategy (MSTR), up 10.37% to $146.44, and AppLovin (APP), which gained 10.01% to $482.81. Arista Networks (ANET) increased 8.21% to $134.83, and Ross Stores (ROST) rose 8.03% to $213.52.

Semiconductor and technology names linked to data infrastructure and digital platforms also advanced. Micron Technology (MU) gained 5.55% to $400.77, Shopify (SHOP) rose 6.38% to $129.65, Tesla (TSLA) climbed 3.44% to $405.94, and Amazon (AMZN) added 3.88% to close at $216.82.

FAQ

What AI revenue target did Broadcom announce?
Broadcom CEO Hock Tan said the company expects its AI chip revenue to exceed $100 billion in 2027.

What is driving Broadcom’s AI-related growth?
Growth is being driven by custom silicon (XPUs) designed as AI accelerators for hyperscale cloud customers, including Google, Meta, and Apple, as well as strong demand for networking chips used in AI data centers.

How did Broadcom’s stock react to the earnings and guidance?
After the March 4, 2026 earnings call and the AI revenue outlook, Broadcom (AVGO) shares rose 1.18% to $317.53.

How did the broader tech market perform on the same day?
The NASDAQ gained 1.29% to 22,807.48, with notable rises in Nvidia, MicroStrategy, AppLovin, Arista Networks, Ross Stores, Micron Technology, Shopify, Tesla, and Amazon.