Broadcom projects AI semiconductor revenue above $100 billion in fiscal 2027

Broadcom projects its AI semiconductor revenue will rise from $56 billion in fiscal 2026 to more than $100 billion in fiscal 2027, supported by significant AI financing activities and potential backstops of up to $29 billion in customer lease payments. The company forecast is broadly consistent with Citi's earlier estimate of $116 billion in fiscal 2027 AI revenue, equal to roughly 70% of the bank's projected $166.5 billion total revenue. Broadcom's growth centers on application-specific integrated circuits, or ASICs, developed for companies including Google and Meta. Citi expects AI ASICs to account for 44% of revenue in the October quarter and more than 55% by the second half of 2028. Google and large language model companies are estimated to contribute $90.3 billion of fiscal 2027 AI revenue. Data-center construction, power procurement and regulatory approvals could constrain the pace of deployment. Broadcom's expansion is closely linked to Samsung Electronics through a memorandum of understanding covering more than $200 billion of cooperation through 2030 in HBM, foundry and advanced packaging. Marvell Technology's expanded Google agreement adds competition to Broadcom's custom AI-chip business, although Broadcom retains a Google contract through 2031. Investors will next watch Broadcom's fiscal 2026 third-quarter results and Marvell's Aug. 27 report, with analysts focusing on Marvell's comments on Google demand.

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