Overview
- Broadcom guides first‑quarter fiscal 2026 AI semiconductor revenue to $8.2 billion within roughly $19.1 billion total sales, signaling AI as the clear growth engine while non‑AI revenue remains about flat year over year.
- AI chip sales reached $20 billion in fiscal 2025, representing 31% of revenue as hyperscalers adopted Broadcom’s custom ASIC accelerators, including Google’s TPU.
- UBS projects approximately 3.7 million TPU units shipping in 2026 and more than 5 million in 2027, modeling AI revenue of about $60 billion in FY2026, $106 billion in FY2027 and roughly $150 billion by FY2028.
- Investor activity has picked up, with ARK disclosing a 24,205‑share purchase and Goldman Sachs listing Broadcom among its top growth stock picks.
- Caution persists on profitability and concentration risk, with Citi cutting its price target to $458 (Buy) and DA Davidson initiating Neutral at $335, citing gross‑margin mix, TPU competition and software exposure ahead of the March 4 report.