tech
March 5, 2026
Broadcom stock rallies as CEO Tan makes strong case for why AI growth will last
Broadcom's AI revenue forecast surpassed many bullish expectations from Wall Street analysts.
TL;DR
- Broadcom's stock rose nearly 5% following CEO Hock Tan's optimistic AI chip revenue forecast.
- Tan anticipates AI chip revenue significantly exceeding $100 billion by 2027.
- This forecast surpasses many Wall Street bullish estimates, with analysts predicting further upside.
- Broadcom is nearing 10 gigawatts of capacity for six customers, with revenue potential of $12-15 billion per gigawatt by 2027.
- The company has secured memory and leading-edge wafer supply through 2028.
- Tan assured investors about sustainable growth and profitability, comparing AI margins to the broader semiconductor business.
- Broadcom believes the difficulty of competing with Nvidia and the need for top-tier chips will benefit the company.
- The company's strong results positively impacted Credo and Amphenol, while Lumentum and Coherent saw declines.
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