Broadcom Locks In Key AI Chip Supply Through 2028

The company said it locked in the required volumes in advance as demand for AI infrastructure accelerates, helping address industry worries about limited HBM supply and constrained Taiwan Semiconductor production capacity, the Chosunbiz reported on Friday.

Strong AI Growth Drives Revenue Outlook

CEO Hock Tan said Broadcom expects AI revenue from its chip business to exceed $100 billion next year.

The company also reported strong growth in its latest results, with fiscal first-quarter revenue reaching $19.31 billion, up 29% year over year, while AI revenue rose 106% to $8.4 billion.

Analysts Raise Price Forecasts After Earnings Beat

Analysts raised their price forecasts on Broadcom after the company beat first-quarter estimates and issued strong guidance driven by continued growth in AI.

Sur said the performance could put Broadcom on track to generate more than $65 billion in AI revenue in fiscal 2026 and potentially over $100 billion in fiscal 2027.

Goldman Sachs analyst James Schneider maintained a Buy rating. He raised his price forecast to $480 from $450, citing management's guidance and commentary that point to strong long-term AI demand and improved visibility into future revenue.

Rosenblatt analyst Kevin Cassidy also maintained a Buy rating and raised his price forecast to $500, highlighting stronger visibility into 2027 demand and Broadcom's leadership in AI ASICs and networking.

Meanwhile, Benchmark analyst Cody Acree reiterated a Buy rating with a $485 price forecast, saying the company's guidance, expanding base of large platform customers, and secured supply chain strengthen confidence in Broadcom's AI growth outlook.

AVGO Price Action: Broadcom shares were down 0.50% at $331.10 during premarket trading on Friday, according to Benzinga Pro data.

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