[News] Broadcom Stops Short of Raising FY2027 US$100B AI Chip Sales Target Despite Google, Meta Commitments

Broadcom holds its Q2 earnings call. According to Bloomberg, the company delivered a softer-than-expected outlook for AI chip revenue, suggesting that its expansion in the rapidly growing AI market may be progressing more slowly than anticipated. The company forecasts AI semiconductor revenue of US$16 billion for its fiscal third quarter ending in July, below the US$17.2 billion average analyst estimate compiled by Bloomberg.

Notably, CNBC reports that CEO Hock Tan did not raise its fiscal 2027 target of more than US$100 billion in AI semiconductor revenue.

Despite the softer outlook, Broadcom’s fiscal second-quarter results came in slightly ahead of expectations. As noted by Bloomberg, revenue for the period ended May 3 rose 48% year over year to US$22.2 billion, while adjusted earnings reached US$2.44 per share.

AI semiconductor revenue totaled US$10.8 billion, compared with the consensus estimate of US$10.7 billion. The segment includes custom AI accelerators used to train and run AI models, as well as networking semiconductors, Bloomberg notes.

Still, Broadcom reiterated its confidence in long-term AI demand. According to Reuters, the company plans to ship 10 gigawatts of compute capacity in 2027 and “a lot more” in 2028, Tan said during the earnings call.

Broadcom Details Long-Term AI Customer Programs

As Bloomberg notes, Broadcom has signed and expanded long-term agreements with multiple customers. However, uncertainty remains over how much of that business will be recognized as revenue in a given quarter, rather than remaining in the company’s multiyear backlog.

The company provided additional details on those customer engagements during its earnings call. According to an Investing.com transcript, Broadcom expects AI semiconductor revenue growth to continue through fiscal 2028, supported by long-term programs with six key customers. Its multigeneration TPU and AI networking partnership with Google continues to expand, while Anthropic is expected to gain access to more than 1GW of Broadcom-supported TPU-based compute in 2026 and an additional 5GW beginning in 2027.

The company also highlighted a growing pipeline of custom AI accelerator programs. Broadcom has delivered silicon to OpenAI and remains on track for production in late 2026. It has also entered into a multigeneration partnership with Meta to supply MTIA AI accelerators, with deployments expected to reach 3GW by the end of 2028. Meanwhile, shipments to two additional ASIC customers are expected to begin in late 2026 and accelerate through 2027.

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(Photo credit: Broadcom)