Date: September 2, 2026 Main source: Reuters Link: https://www.reuters.com/business/broadcom-forecasts-quarterly-revenue-below-estimates-2026-09-02/
Summary
Broadcom raised its AI chip revenue forecast for fiscal year 2027 to approximately $115 billion, up from a previous estimate above $100 billion. The company expects that figure to double to nearly $230 billion in 2028. Its quarterly AI chip sales exceeded $16.7 billion, driven by demand from large tech companies. Broadcom also pointed to infrastructure commitments tied to Anthropic, OpenAI and Meta.
Why it matters
The expansion confirms that AI spending is diversifying beyond NVIDIA GPUs. Hyperscalers are increasing their use of custom accelerators, specialized networking and architectures designed for specific workloads. This can lower inference costs over the long run and open stronger competition among NVIDIA, Broadcom, AMD, Google and custom chip providers.
Practical implications
- Expect bigger price differences between inference providers over the next hardware cycles.
- Design portable workloads so you can take advantage of discounts and new accelerators.
- Evaluate infrastructure costs per use case, not just per provider or model name.