Bloomberg Tech Broadcom Expects AI Chips Sales to Top $100 Billion in 2027
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Mar 5, 2026 Joanne Feeney, portfolio manager and capital partner who manages institutional equity portfolios, explains Broadcom's AI positioning and financial outlook. She discusses Broadcom’s execution, TSMC partnership, and how chips plus networking and software create advantage. She also covers likely M&A appetite, buybacks, and capacity through 2028.
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Broadcom's $100B AI Chip Projection
- Broadcom projects AI chip sales to exceed $100 billion in 2027, up from roughly $10 billion this quarter.
- The claim rests on a $73 billion AI backlog and multi-year customer visibility, plus Broadcom's capacity commitments through 2028.
Co-Design And Networking Make Broadcom Scalable
- Broadcom's strength is co-design plus scale: they coordinate chip architecture with TSMC to reach high yields and rapid manufacturing.
- They bundle networking silicon with compute (XPUs/TPUs), so customers get chips plus data-center connectivity, expanding addressable market beyond six hyperscalers.
Software Complements Broadcom Hardware Advantage
- Broadcom's VMware/software assets complement hardware by integrating AI into enterprise workflows, turning model output into operational change.
- Software recurring revenue helps stabilize margins while enabling customers to act on AI-driven insights.