Broadcom issues strongest guidance ever: expects AI chip revenue to reach $230 billion in fiscal year 2028, far exceeding expectations.
Chip giant Broadcom, following its latest quarterly earnings release, officially provided its first guidance for AI chip revenue in fiscal year 2028, projecting $230 billion, significantly higher than Wall Street's previous forecast of $174.5 billion. Concurrently, the company raised its AI revenue guidance for fiscal year 2027 to $115 billion and expects non-GAAP earnings per share to exceed $30 in fiscal year 2028. Broadcom's management also disclosed that Anthropic and OpenAI will replace Google as its largest AI chip buyers in fiscal years 2027 and 2028, respectively, indicating a diversified customer base that reduces reliance on a single client. Investment banks including Goldman Sachs, HSBC, and Jefferies have all maintained their "buy" ratings.
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