Broadcom Raises AI Revenue Forecast Amid Surging Infrastructure Demand

Major semiconductor firms are reporting record growth as JPMorgan projects annual AI infrastructure spending will reach $1.4 trillion by 2030. Broadcom Inc. raised its AI semiconductor revenue forecast for fiscal 2027 to approximately $115 billion, up from a previous estimate of over $100 billion. The company expects this figure to double to roughly $230 billion in fiscal 2028, driven by custom AI accelerators and networking chips.

Broadcom reported total quarterly revenue of $29.59 billion, with AI chip sales tripling to $16.7 billion in the third quarter. The company has secured significant compute agreements and infrastructure visibility with Anthropic, OpenAI, and Meta Platforms, totaling 18 gigawatts of deployment. Broadcom is positioning its custom silicon as a primary alternative or supplement to general-purpose GPUs.

Other industry leaders reported similar momentum. NVIDIA posted Q2 FY27 revenue of $96.22 billion and began shipping its Vera Rubin product, which is expected to be the fastest ramp in the company's history. Taiwan Semiconductor Manufacturing Company (TSMC) reported Q2 revenue of $40.20 billion and plans to increase its 2026 capital budget to between $60 billion and $64 billion to meet demand.

Despite the growth, the sector faces risks including supply bottlenecks, high customer concentration among a few hyperscalers, and geopolitical tensions surrounding Taiwan.