Broadcom CEO Defends AI Demand, Sees $230B AI Chip Revenue by 2028
AVGO sits 19% above its 52-week low of $289.96.
Summary
Broadcom CEO Hock Tan publicly pushed back against AI slowdown fears, telling CNBC that demand for AI compute infrastructure remains 'very strong' and durable, particularly for inference. He reiterated the company's AI semiconductor revenue targets of $115 billion in fiscal 2027 and $230 billion in fiscal 2028. The comments came after Anthropic CEO Dario Amodei called for a slower pace of frontier AI development, which triggered a 4.8% drop in Broadcom shares on Monday and a 5.6% decline in the SOXX semiconductor ETF. Anthropic is expected to become Broadcom's largest custom chip customer in 2027, making the debate directly relevant to Broadcom's growth trajectory. The stock remains under pressure, trading below key moving averages, but Tan's bullish stance provides a counterweight to the risk-off sentiment. This follows Broadcom's strong Q3 FY26 results and Q4 guidance of $34.8 billion, which had already signaled robust AI demand.
At the time of this announcement, AVGO was trading at $346.06 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.6T. The 52-week trading range was $289.96 to $495.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Benzinga.