[News] Broadcom Reportedly Eyes $100B AI Chip Revenue in 2027, Backed by 6 Key Clients Like Google

As major tech firms accelerate in-house chip development, Broadcom is seeing a surge in demand from clients such as Google and Meta. On its March 4 earnings call, the company projected that AI chip revenue could exceed $100 billion in 2027, according to Reuters.

Broadcom typically partners with clients such as Google on their tensor processing units (TPUs) and with OpenAI on custom in-house processors. CNBC highlights the company’s impressive client lineup: CEO Hock Tan said the custom AI market is entering its “next phase” and poised to accelerate, with Broadcom supporting six key customers—including Google, Meta, Anthropic, OpenAI, and likely Fujitsu and ByteDance.

Reuters, citing Tan, reports that the company plans to deliver 1 gigawatt of TPUs for AI startup Anthropic in 2026, with demand expected to rise to 3 gigawatts in 2027. Broadcom also aims to ship OpenAI’s first AI chip in 2027, providing over 1 gigawatt of the custom processors, the report adds.

Notably, CNBC highlights that Broadcom’s disclosed chip volumes for major clients are approaching the scale of top AI chip makers led by NVIDIA, which reported 5 gigawatts of sales to OpenAI last week. During the earnings call, CEO Hock Tan also addressed Meta, clarifying that reports of a slowdown in the social media giant’s AI chip business were mistaken.

“Meta’s custom accelerator MTIA roadmap is alive and well,” Tan said, adding that Broadcom is already shipping the chips, CNBC reports.

TrendForce projects that ASIC-based AI servers will account for 27.8% of the market by 2026, the highest share since 2023, driven by North American giants like Google and Meta expanding their in-house ASIC efforts. With the top five North American cloud providers—Google, AWS, Meta, Microsoft, and Oracle—expected to boost capital spending by 40% YoY in 2026, Broadcom could emerge as a key beneficiary of the AI infrastructure boom.

Strong Q2 Outlook

Riding on the momentum, Broadcom forecasts Q2 revenue of roughly $22 billion, surpassing analysts’ $20.56 billion consensus, with AI chip sales projected at $10.7 billion for the quarter, Reuters reports.

Broadcom reported Q1 revenue of $19.31 billion, up 29% and surpassing analysts’ $19.18 billion estimate, Reuters notes, adding that adjusted EPS came in at $2.05, above the $2.03 consensus. AI revenue more than doubled to $8.4 billion for the quarter ended February 1, fueled by strong demand for custom AI accelerators and networking solutions.

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(Photo credit: Broadcom)