What happened
On an earnings call, Broadcom's CEO said AI chip revenue is expected to double in fiscal 2027 to about $115 billion, then rise to roughly $230 billion in fiscal 2028.
The CEO also said the company's fiscal 2028 earnings per share could exceed $30, a figure above Wall Street's estimates.
He predicted that Anthropic would overtake Google in 2027 as Broadcom's largest custom chip customer, with OpenAI becoming the second largest.
Why it matters
These projections suggest Broadcom anticipates a rapid acceleration in demand for specialized AI chips over the next two years, potentially driving significant revenue growth.
The expected shift in customer ranking indicates that AI-focused startups such as Anthropic and OpenAI may become increasingly important buyers of custom silicon, altering the competitive dynamics in the AI infrastructure market.
Key facts
Broadcom expects AI chip revenue to double in fiscal 2027 to approximately $115 billion.
The company forecasts AI chip revenue of approximately $230 billion in fiscal 2028.
Broadcom's CEO expects fiscal 2028 EPS to surpass $30, exceeding Wall Street expectations.
The CEO anticipates Anthropic will surpass Google as Broadcom's largest custom chip customer in 2027, with OpenAI as the second largest.
What to watch next
Whether Broadcom can deliver on these aggressive revenue targets and sustain its custom chip business momentum.
How the projected rise of Anthropic and OpenAI as major customers could affect Broadcom's partnerships with established players like Google.