Broadcom CEO Hock Tan: Expects AI revenue to double consecutively over the next two years, reaching $230 billion in fiscal year 2028; custom chips to match GPU performance at half the cost.

After market close on Wednesday ET, Broadcom announced its net revenue for the third fiscal quarter of 2026 surged 86% year-over-year to $29.591 billion, with AI semiconductor revenue soaring 221% year-over-year to $16.7 billion. The company raised its full-year AI revenue guidance for fiscal year 2026 to $58 billion. CEO Hock Tan stated on the conference call that he expects AI chip revenue to double to approximately $115 billion in fiscal year 2027, and double again to $230 billion in fiscal year 2028, potentially achieving earnings per share exceeding $30. He emphasized that Broadcom's custom AI chips (XPUs) can rival or even surpass top-tier GPUs in performance when running specific large language model workloads, at half the cost of GPUs. The company also disclosed XPU deployment plans for major clients such as Google, OpenAI, Anthropic, and Meta, and partnered with Apollo and Blackstone to establish the "AI XPV Platform" to provide financing support to clients, addressing the physical bottlenecks in data center implementation.