Broadcom lifts fiscal 2028 AI revenue outlook to $230 billion as supply fills the 2027 gap
Broadcom (NASDAQ: AVGO) lifted its fiscal 2027 AI revenue outlook to $115 billion from prior guidance of $100 billion and projected that figure to double again to $230 billion in fiscal 2028, a number that cleared Citigroup analysts' earlier estimate of $180 billion by a wide margin. The company acknowledged that fiscal 2027 demand is already running ahead of its own $115 billion projection, with supply the binding constraint for that year. For 2028, Broadcom said it has secured the capacity needed to meet the outlook.
Key takeaways
- Broadcom raised its fiscal 2027 AI revenue outlook to $115 billion from $100 billion and projected it will double to $230 billion in fiscal 2028.
- The $230 billion fiscal 2028 target far exceeds Citigroup analysts' earlier $180 billion estimate.
- In the fiscal third quarter ended August 2, overall revenue rose 86% to $29.6 billion and adjusted EPS climbed 96% to $3.32, both ahead of LSEG consensus.
- Anthropic is set to become Broadcom's largest customer in fiscal 2027, deploying 5 gigawatts of TPU v8i that year and scaling to 10 gigawatts in 2028.
- For fiscal Q4, Broadcom guided to $34.8 billion in revenue with AI revenue expected to surge 236% to $21.6 billion.
Broadcom (NASDAQ: AVGO) lifted its fiscal 2027 AI revenue outlook to $115 billion from prior guidance of $100 billion and projected that figure to double again to $230 billion in fiscal 2028, a number that cleared Citigroup analysts' earlier estimate of $180 billion by a wide margin. The company acknowledged that fiscal 2027 demand is already running ahead of its own $115 billion projection, with supply the binding constraint for that year. For 2028, Broadcom said it has secured the capacity needed to meet the outlook.
The order book fills in the rest. Anthropic is set to become Broadcom's largest customer in fiscal 2027, with the frontier lab planning to deploy 5 gigawatts of TPU version 8i that year, scaling to 10 gigawatts in 2028. OpenAI is projected to become the second-largest chip customer, with 5 gigawatts of Broadcom's new Jalapeño chip and its successor expected to be deployed in 2028. Broadcom will deliver Meta Platforms 3 gigawatts of custom MTIA silicon across three chip generations through 2028. Alphabet, already a major customer, is expected to generate tens of billions of dollars in TPU revenue with Broadcom annually in the years ahead. Broadcom also said its AI networking segment is expected to grow at the same pace as its custom chip business.
In the fiscal third quarter ended August 2, AI semiconductor revenue came in up 221% year over year. Overall revenue rose 86% to $29.6 billion and adjusted EPS climbed 96% to $3.32, both ahead of the LSEG consensus of $3.24 and $29.36 billion respectively. Semiconductor solutions revenue rose 127% to $20.8 billion; non-AI chip revenue added a more measured 5% to reach $4.2 billion; infrastructure software came in at $8.8 billion, up 29%. Total gross margin was 75%, down 210 basis points as semiconductor revenue represents a growing share of the mix, with the software segment at 84% and semiconductor at 76%.
During the quarter, Broadcom began mass shipments of Ironwood TPU v7 chips to both Alphabet and Anthropic and started delivering Alphabet's next-generation TPU v8i for inference. MediaTek handles the v8t training variant. Broadcom noted it brought the v8i to market faster than MediaTek despite a later start.
Guidance and what to watch
For fiscal Q4, Broadcom is guiding to $34.8 billion in revenue, a 93% year-over-year gain, with AI revenue expected to surge 236% to $21.6 billion and gross margin at 73%. The company projects adjusted EPS of over $30 for the full fiscal 2028. The stock is currently trading at a forward P/E of 11.5 times its own fiscal 2028 earnings guidance. The next confirmable datapoint is the fiscal Q4 print.
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Filed by the newsroom of MarketPR on September 6, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.