Broadcom AI Chip Sales Surge as BigBear.ai and C3.ai Falter

Broadcom emerges as a standout investment in the AI semiconductor space, with its customized AI chip sales surging 65% to $20 billion in fiscal 2025. The company, which designs application-specific integrated circuits for hyperscaler clients including Meta and Alphabet, projects AI chip revenue could reach $60 billion to $90 billion by the end of fiscal 2027.

The analysis contrasts Broadcom's trajectory with two struggling AI software firms. BigBear.ai, which develops AI modules for edge networks primarily serving government and defense contracts, saw revenue decline from $146 million in 2021 to $128 million in 2025. The drop was partly driven by the bankruptcy of Virgin Orbit, BigBear.ai's former top customer.

C3.ai faces a different but equally challenging problem. While the enterprise and government AI provider grew revenue to $389 million by fiscal 2025, its net losses widened to $289 million over the same period. Analysts now predict C3.ai's revenue will fall further to $251 million by fiscal 2028, citing restructuring costs and intensifying competition.

The divergence highlights a growing gap in the AI sector between infrastructure providers with deep hyperscaler relationships and smaller software firms struggling to achieve profitability. Broadcom's direct partnerships with the largest cloud operators position it to capture a disproportionate share of AI spending, while BigBear.ai and C3.ai face customer concentration risks and margin pressures that continue to erode their financial outlooks.