Broadcom Shares Soar 20% Amid AI Chip Expansion

Broadcom stock surged over 20% on Friday following CEO Hock Tan’s announcement of “massive” growth prospects in the AI chip market, Yahoo Finance reported.

$60–$90 billion in revenue is expected for Broadcom over the next three years from custom AI chips for its three existing hyperscaler customers. I Photo: Cmglee Wikimedia Commons

During the quarterly earnings call, Tan projected $60–$90 billion in revenue over the next three years from custom AI chips for its three existing hyperscaler customers. The unnamed clients are expected to deploy one million clusters of Broadcom’s XPU chips by 2025.

Additionally, Broadcom revealed it has secured two more hyperscaler customers, reportedly OpenAI and Apple, which could generate further revenue from next-generation AI chip development.

“We see our opportunity in AI as massive,” Tan told investors.