Broadcom Projects Over $100 Billion Revenue by 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Source: Fool
- Significant Revenue Growth: Broadcom reported a 29% year-over-year revenue increase last quarter, reaching $19.3 billion, with management projecting a 47% year-over-year growth to $22 billion in the second quarter, highlighting strong demand and market potential in the AI sector.
- Optimistic 2027 Outlook: CEO Hock Tan revealed that Broadcom expects to generate over $100 billion in revenue by 2027, a target primarily driven by customer demand for AI chips and the company's robust capabilities in custom chips and networking equipment.
- Customer Demand Drivers: Broadcom's revenue outlook is bolstered by close collaborations with key clients like Google and OpenAI, who are accelerating investments in AI infrastructure, particularly with Google's next-generation Ironwood chip and OpenAI's custom chip plans.
- Supply Chain Advantages: Broadcom has secured leading-edge wafers and high-bandwidth memory, ensuring it can meet customer demands through 2028, thereby mitigating risks associated with chip production bottlenecks and enhancing the company's competitive position in the market.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 426.580
Low
370.00
Averages
457.75
High
525.00
Current: 426.580
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Revenue Growth: In the fiscal first quarter of 2026, Broadcom's revenue rose 29% year-over-year to $19.3 billion, with the semiconductor solutions segment seeing a 52% increase to $12.5 billion, indicating robust demand in the AI sector.
- Cash Flow and Shareholder Returns: Broadcom generated $8.0 billion in free cash flow, representing 41% of revenue, and returned $10.9 billion to shareholders through buybacks and dividends, demonstrating its strong profitability and commitment to shareholders.
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- AI Revenue Surge: Broadcom's AI revenue more than doubled, soaring 106% to $8.4 billion last quarter, contributing to a 29% year-over-year revenue increase to $19.3 billion, indicating rapid expansion and strong demand in the AI chip market.
- Strong Cash Flow: The company reported free cash flow of $8.0 billion, representing 41% of total revenue, while returning $10.9 billion to shareholders through buybacks and dividends, showcasing its robust financial health and commitment to shareholder returns.
- Customer Concentration Risk: Despite establishing custom chip partnerships with six major clients, including Google, Meta, and OpenAI, the high customer concentration poses risks; if clients shift to in-house chip designs or reduce spending, it could adversely affect the company's growth and valuation.
See More
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- Significant Revenue Growth: In the fiscal first quarter of 2026, Broadcom reported a 29% year-over-year revenue increase to $19.3 billion, with its semiconductor solutions segment growing by 52%, and AI product revenue more than doubling at 106%, indicating robust demand in the AI sector.
- Cash Flow and Shareholder Returns: The company generated $8.0 billion in free cash flow, representing 41% of revenue, and returned $10.9 billion to shareholders through buybacks and dividends, further boosting investor confidence in its financial health.
- Optimistic Future Outlook: Broadcom anticipates AI chip revenue exceeding $100 billion by 2027 and has secured manufacturing capacity, demonstrating its strategic positioning and growth potential in the rapidly evolving AI market.
See More
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- Improved Investor Sentiment: As market sentiment improves, investors are showing a greater preference for risk assets, which may result in increased capital flowing into high-growth industries, further propelling stock market gains.
- Economic Recovery Outlook: The anticipation of the Iran deal not only boosts short-term stock performance but also lays the groundwork for long-term economic recovery, drawing more investor attention to opportunities in related sectors.
See More
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