Broadcom CEO Reiterates $100B AI Revenue Target for 2027

Hock Tan has anchored Broadcom's AI story to a concrete number — over $100 billion in fiscal 2027 semiconductor revenue — and he hasn't wavered from it since the June 3 call. That call also produced strong near-term figures: $10.8 billion in AI revenue for the fiscal second quarter, up 143%, and $30 billion in bookings against that. The discrepancy between the intact forecast and a stock that's fallen 25% from its high is what makes the Sept. 2 report significant.

The market's discount could stem from timing, concentration, or doubt about the forecast itself. Timing looks most concrete: the 10 gigawatts planned for fiscal 2027 are weighted to the back half, so results could look ordinary for a quarter or two. Concentration got fresh evidence on Aug. 19, when Marvell disclosed an expanded Google custom-chip deal, though Broadcom has its own long-term Google agreement. The forecast is hardest to doubt, given the signed contracts Tan described, including commitments to Anthropic, OpenAI, and Meta.

The Sept. 2 report is the first checkpoint between June's promises and next year's target. It will show how the $16 billion third-quarter guidance played out and what the fiscal fourth-quarter guidance says about the $56 billion full-year number. The author views the stock as a hold, calling the forecast credible and the drawdown cheaper to own, but notes the valuation only pays off if delivery happens.