Hock Tan said Broadcom has "line of sight" to generate over $100 billion in AI chip revenue by fiscal 2027, placing avgo stock squarely on the AI-infrastructure narrative. Broadcom reported last-quarter revenue rose 29% year over year to $19.3 billion and management is guiding fiscal second-quarter revenue to $22 billion, a 47% year-over-year increase.
Hock Tan's $100 Billion Claim
$100 billion is the revenue target Hock Tan cited for Broadcom's AI chips in fiscal 2027, and he used the phrase "line of sight" to describe the company's visibility to that outcome. That explicit target anchors management's argument that custom chips, networking and software demand from a handful of hyperscalers can scale into a multi-year AI business.
Broadcom's $19.3B Quarter
29% was Broadcom's year-over-year revenue increase last quarter, taking total revenue to $19.3 billion and underpinning management's fiscal Q2 guide of $22 billion, a 47% rise. The guidance and recent pullback — which lowered the stock's forward price-to-earnings multiple to 28 — are the immediate valuation levers investors will use when sizing avgo stock against analysts' 41% projected annualized earnings growth.
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Customers: Google, OpenAI, Meta
Google's plans to ramp its next-generation Ironwood chip and OpenAI's plan to deploy its first custom chip are named catalysts in Broadcom's outlook, alongside Anthropic, Meta Platforms and two other customers management did not name. Broadcom supplies custom chips, networking gear and software for data centers, holds a custom-chips market share of over 70% versus Marvell at about 20%, and has already locked in leading-edge wafers, high-bandwidth memory and other components through 2028 to support scale.
Fiscal 2027: Can Broadcom translate that supply-line positioning and concentrated demand from six key customers into the $100 billion AI chip revenue outcome Hock Tan described? Investors weighing avgo stock now must reconcile the $100 billion target and secured components through 2028 with the company's current multiples — forward P/E of 28 — and analysts' 41% earnings growth projections, then decide whether that gap reflects risk or opportunity.
