Jakarta, INTI - On Wednesday, March 4, 2026, chip designer company Broadcom said that its artificial intelligence (AI) chip would gain revenue of over $100 billion by 2027. This is due to the increase in demand for custom AI chips in the market.
The company's shares rose more than 4% in extended trading following the announcement of a share repurchase program of up to $10 billion through the end of the year.
High Demands of AI Chips from Tech Companies
Tech giants, such as Alphabet, Microsoft, Amazon, and Meta Platforms, are expected to spend at least $630 billion this year building AI infrastructure, driving demand for AI chips, servers, storage, and networking.
"Our visibility into 2027 has improved dramatically. Even today, we have a clear line of sight to exceed $100 billion in AI chip revenue by 2027," said the CEO of Broadcom, Hock Tan.
Broadcom expects second-quarter revenue of about $22 billion. The number is above analysts’ estimation of $20.56 billion, along with projected AI chip revenue of $10.7 billion.
Broadcom does not design entire AI chips itself. Broadcom supplies semiconductors and infrastructure software, and works with clients, like Google and OpenAI, to develop their tensor processing units and in-house custom processors, respectively. Broadcom then helps translate design into physical layout of the AI chip, and it is then manufactured by companies like TSMC.
Broadcom to Deliver TPUs to Anthropic and OpenAI
Tan also said Broadcom will ship 1 gigawatt worth of tensor processing units (TPUs) to Anthropic, an AI startup, in 2026, increasing to 3 gigawatts in 2027. The company targets to deliver its first AI chip to OpenAI in 2027, with a volume exceeding 1 gigawatt.
Broadcom previously stated it would sell at least 1 million chips by 2027 based on its stacked design technology. It will mark new product and sales target that could potentially bring billions of dollars worth of revenue.
Conclusion
Broadcom projects AI chip revenue will surpass $100 billion by 2027, following demand from tech giants like Alphabet, Microsoft, Amazon, and Meta Platforms. The company expects second-quarter revenue of $22 billion. Broadcom will also ship TPUs to Anthropic starting in 2026 and aims to ship AI chips to OpenAI in 2027.
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