Broadcom: ASIC revenue to double to $115 billion next year

Broadcom's position in the AI infrastructure boom rests on two complementary businesses: data center networking and custom AI chips called ASICs. On the networking side, its Tomahawk and Jericho chipsets are the industry standard for high-bandwidth switching and routing, and demand for these components grows as AI chip clusters expand. But the bigger opportunity lies in ASICs, where Broadcom holds roughly a 60% market share. The company helped Alphabet develop its Tensor Processing Units and has also worked with Meta Platforms and OpenAI on custom chips that are just starting to ramp up. With six customers for custom AI chips and projections that its ASIC revenue will double next year to $115 billion and again to $230 billion in fiscal 2028, Broadcom is betting that hyperscalers will continue shifting toward purpose-built silicon to manage the massive costs and power demands of AI infrastructure.