Broadcom secures AI chip supply through 2028, projects $100B in revenue amid Nvidia competition

Broadcom Locks Key AI Chip Supply Through 2028 - Broadcom (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) is strengthening its position in the artificial intelligence chip market by securing critical supply chains and drawing bullish responses from Wall Street analysts after strong earnings and guidance. Broadcom Locks In Key AI Chip Supply Through 2028 The company said it locked in the required volumes in advance as demand for AI infrastructure accelerates, helping address industry worries about limited HBM supply and constrained Taiwan Semiconductor production capacity, the Chosunbiz reported on Friday. Strong AI Growth Drives Revenue Outlook CEO Hock Tan said Broadcom expects AI revenue from its chip business to exceed $100 billion next year. The company also reported strong growth in its latest results, with fiscal first-quarter revenue reaching $19.31 billion, up 29% year over year, while AI revenue rose 106% to $8.4 billion. Analysts Raise Price Forecasts After Earnings Beat Analysts raised their price forecasts on Broadcom after the company beat first-quarter estimates and issued strong guidance driven by continued growth in AI. Sur said the performance could put Broadcom on track to generate more than $65 billion in AI revenue in fiscal 2026 and potentially over $100 billion in fiscal 2027. Goldman Sachs analyst James Schneider maintained a Buy rating. He raised his price forecast to $480 from $450, citing management's guidance and commentary that point to strong long-term AI demand and improved visibility into future revenue. Rosenblatt analyst Kevin Cassidy also maintained a Buy rating and raised his price forecast to $500, highlighting stronger visibility into 2027 demand and Broadcom's leadership in AI ASICs and networking. Meanwhile, Benchmark analyst Cody Acree reiterated a Buy rating with a $485 price forecast, saying the company's guidance, expanding base of large platform customers, and secured supply chain strengthen confidence in Broadcom's AI growth outlook. AVGO Price Action: Broadcom shares were down 0.50% at $331.10 during premarket trading on Friday, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Broadcom rises on $100B AI outlook in Nvidia-led market

STORY: Shares of Broadcom rose more than 5 percent Thursday morning after the company predicted over $100 billion in AI chip sales next year, signaling rapid share gains in the market dominated by Nvidia. Big Tech's push to secure the vast computing power needed for artificial intelligence has lifted Broadcom in the data-center infrastructure race as it helps design custom processors that can serve as an alternative to Nvidia's costly chips. Analysts say the company is seeing heavy demand from clients including Meta Platforms and Anthropic, with customer commitments equivalent to the power consumption needs of more than 8 million U.S. households. :: Nvidia That puts Broadcom closer to the scale of recent AI chip deals by Nvidia and AMD as the rise of custom processors increasingly threatens Nvidia's stronghold in the advanced data-center infrastructure market. Both Broadcom and Nvidia, have seen their stocks decline so far this year amid investor concerns around whether heavy spending on AI will generate sufficient returns to justify lofty tech valuations. :: Broadcom CEO Hock Tan also assured investors the company was well-placed amid widespread supply shortages of memory chips and limited capacity at AI processor manufacturer TSMC.