Broadcom and Marvell Project Massive AI Revenue Growth

Broadcom Inc. is positioning itself as the primary custom-silicon partner for frontier AI companies, designing chips for Google, Meta, and OpenAI. The company expects AI revenue to reach approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. CEO Hock Tan stated that demand for AI semiconductors currently exceeds the company's outlook and that the firm is on target to exceed $30 in earnings per share in fiscal 2028.

Broadcom's growth is driven by the production of Google's TPUs, Meta's MTIA chips, and OpenAI's Jalapeno accelerator. The company also developed the Tomahawk 7, the first 200-terabit-per-second Ethernet switch in the industry. While analysts forecast total revenue of $173.5 billion for fiscal 2027, Broadcom faces risks including debt from its VMware acquisition and a heavy reliance on a few hyperscalers. Anthropic is expected to become the company's largest XPU customer by 2027.

Simultaneously, Marvell Technology is guiding for revenue growth of about 50% in fiscal 2028, supported by a custom silicon deal with Google. CEO Matt Murphy reported that growth rates are accelerating even as the revenue base expands. In a similar trend, Oracle has reported 121% growth in cloud infrastructure revenue and a $664 billion signed backlog, though it faces negative free cash flow due to high quarterly capital expenditures.