Overview
- Management says AI semiconductor revenue should double year over year in Q1 to about $8.2 billion, exceeding 40% of projected quarterly sales.
- Hyperscaler spending announcements, including from Amazon, helped lift the shares about 11% over the past week to roughly $343, signaling renewed demand for Broadcom’s custom chips.
- ARK Invest bought 87,148 Broadcom shares (about $27 million) on Feb. 6, and Jefferies reiterated a Buy rating with a $500 price target.
- AI chip revenue reached $20 billion in fiscal 2025, roughly 31% of sales, as Broadcom focuses on customized accelerators rather than general‑purpose data center GPUs.
- Broadcom targets annualized AI chip revenue of $60 billion to $90 billion by the end of fiscal 2027, with growth tied to a small number of hyperscalers that heighten concentration and execution risks.