Broadcom targets $100 billion in AI revenue – analysts call it a buy

From $20 billion to $100 billion in two years

Broadcom is no longer just a semiconductor company living in Nvidia's shadow. In recent months, CEO Hock Tan has repeatedly stated a target that almost sounds unrealistic: more than $100 billion in AI chip revenue for fiscal year 2027. To put that in perspective, the company reported total revenue of around $75 billion over the past twelve months — including its software division.

The growth trajectory is not without substance, however. According to research material gathered by 24markets, AI semiconductor revenue rose 106% year-over-year in Q1 2026, reaching $8.4 billion. In the following quarter, growth accelerated further to 143%, with sales of $10.8 billion. Management is now guiding for more than 200% growth in Q3 2026, to an estimated $16 billion.

Hyperscalers locking in multi-year commitments

The main reason analysts are taking Broadcom seriously is not the growth figures alone — it is the contract structure behind them. The company has entered into multi-year supply agreements with some of the world's largest technology companies, including Alphabet (Google), Meta Platforms, Anthropic, and OpenAI. Some of these contracts extend as far as 2031, providing unusually strong forward visibility for a semiconductor company.

The strategy centers on custom AI accelerators and networking chips, which for specific workloads can be a more cost-effective alternative to Nvidia's general-purpose GPUs. This makes Broadcom an attractive partner for hyperscalers looking to optimize their capital expenditure.

Research firm Mizuho, through analyst Vijay Rakesh, expects according to the research material that Broadcom's revenue from Anthropic alone will double from $21 billion in 2026 to $42 billion in 2027 — a forecast that underscores how dependent the entire AI infrastructure is becoming on custom-designed chips.

Analysts' verdict: still a buy signal

Wall Street's consensus is, according to available research material, broad and clearly positive. TD Cowen maintains a "Buy" rating, pointing to the company's ability to demonstrate multi-year visibility as the key driver of investor confidence going forward. Morningstar has raised its fair value estimate after the 2027 guidance exceeded its own expectations, highlighting in particular the rapid scale-up tied to Anthropic and OpenAI as a positive.

Risks and caveats analysts flag

There is nonetheless reason to approach the big numbers with a critical eye. The $100 billion forecast assumes a near-continuous acceleration of AI investment by the major hyperscalers — investment that is cyclically sensitive and can be adjusted quickly when market conditions shift. Furthermore, Broadcom operates in a segment where competition is intensifying; Nvidia, AMD, and a number of vertically integrated players are all building out their own custom chip solutions.

It is also worth noting that the forecasts largely originate from the company's own management and from analysts who already hold a positive stance. The market is pricing in substantial growth, which means any disappointment will punish the share price severely.

For Norwegian investors tracking technology stocks with exposure to AI infrastructure, the Broadcom case is relevant as an indicator of where capital flows are heading in the global semiconductor market — a market that also affects Norwegian tech-oriented funds and global index funds with heavy technology exposure.

Sources: Nasdaq Markets, TD Cowen, Morningstar, Mizuho Research — via 24markets research desk