【AI+AVGO Performance】Broadcom AI revenue doubles; AI chip sales expected to exceed $100 billion next year; Broadcom rises half a percent after hours

2026-03-05 00:34:21

Abstract generation in progress

Broadcom (AVGO) reports quarterly earnings, with revenue and guidance exceeding expectations. CEO Hock Tan expressed confidence in achieving over $100 billion in AI chip revenue by 2027 and has secured the supply chain needed to reach this goal. Broadcom’s stock rose 4.9% after hours, trading at $333.20.

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Broadcom expects second-quarter revenue to reach $22 billion, above the average forecast of $20.56 billion. Guidance includes $14.8 billion in semiconductor solutions revenue, higher than the predicted $13.06 billion. Adjusted profit margin is expected to be 68%, above the general expectation of 66%.

For the first quarter, Broadcom reported revenue of $19.31 billion, up 29% year-over-year and above the market forecast of $19.18 billion. Adjusted earnings per share were $2.05, higher than the expected $2.03.

During the period, AI business revenue grew 106%, reaching $8.4 billion, mainly driven by strong demand for customized AI accelerators and AI networks.

Additionally, semiconductor solutions revenue was $12.52 billion, surpassing analyst expectations of $12.25 billion. Infrastructure software revenue was $6.8 billion, below the forecast of $7.02 billion.

Hock Tan stated that Anthropic is expected to generate 3 gigawatts of computing power demand in fiscal 2027. OpenAI is projected to deploy over 1 gigawatt of first-generation customized chips by 2027. Meta’s custom chip roadmap is progressing well.

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