Broadcom has announced a significant expansion in its AI semiconductor business, projecting revenue to reach $230 billion by fiscal 2028. This forecast represents a doubling of its 2027 target of $115 billion, driven by deep partnerships with major technology firms including Alphabet, Meta Platforms, OpenAI, and Anthropic.
The company's momentum is evident in recent financial results, where AI semiconductor sales surged 221% in the third quarter of fiscal 2027 to reach $16.7 billion. This rapid growth has positioned Broadcom to dominate the custom AI chip market, holding a 60% share compared to Marvell's 20% to 25% stake.
Investors are reacting positively to these projections, with analysts suggesting Broadcom's stock price could climb to over $900 per share. The firm has already secured the necessary supply chain to meet this high demand, aiming to triple its total sales from the current $89 billion over the next two and a half years.
While Broadcom scales up, the broader AI hardware sector sees Nvidia and Micron Technology highlighted as top picks for 2026. Nvidia is expected to grow revenue by 70% next year, while Micron faces supply constraints until new production facilities come online in 2027 or 2028.
Amidst this hardware boom, companies are also ramping up cybersecurity spending in September 2026 to counter escalating AI hacking threats. Executives are allocating more funds to monitor employee AI usage and deploy scanning models, with Lumen Technologies planning a 30% budget increase for these security measures.
Key Takeaways
- Broadcom forecasts AI semiconductor revenue will reach $230 billion by fiscal 2028.
- AI chip sales for Broadcom jumped 221% in the third quarter of fiscal 2027.
- Broadcom holds a 60% market share in the custom AI chip sector.
- Major clients driving growth include Alphabet, Meta Platforms, OpenAI, and Anthropic.
- Analysts predict Broadcom's stock price could rise to over $900 per share.
- Nvidia is expected to achieve 70% revenue growth next year.
- Micron Technology faces supply constraints until mid-2027 to 2028.
- Companies are increasing cybersecurity budgets in September 2026 due to AI hacking risks.
- Lumen Technologies plans a 30% increase in its cybersecurity budget.
- Broadcom aims to triple its total sales from $89 billion over the next two and a half years.
Broadcom predicts $230 billion AI revenue by 2028
Broadcom announced it expects AI semiconductor revenue to reach $230 billion by 2028. This figure is based on partnerships with major companies like Alphabet, Meta Platforms, OpenAI, and Anthropic. The company plans to grow its AI chip sales from $58 billion this year to $115 billion in 2027. If these projections are correct, Broadcom's stock price could rise to over $900 per share.
Broadcom stock could hit $900 due to AI chip growth
Broadcom forecasts that the global market for AI semiconductors will reach $230 billion by 2028. The company designs custom chips used in artificial intelligence, machine learning, and the Internet of Things. Its strong relationships with major technology firms position it to capture a large share of this growing market. Investors believe this growth could drive the stock price to $900 per share.
Broadcom dominates custom AI chip market over Marvell
Broadcom holds a 60% share of the custom AI chip market while Marvell holds between 20% and 25%. Broadcom's revenue grew 86% in the third quarter of fiscal 2026, driven by a 221% increase in AI semiconductor sales. Major clients like OpenAI and Meta Platforms are increasing their spending on these specialized chips. Analysts believe Broadcom's larger market share will lead to faster growth than Marvell.
Broadcom AI chip revenue jumped 221% last quarter
Broadcom reported a 221% increase in AI semiconductor revenue during the third quarter of fiscal 2027. The company expects this revenue to reach $115 billion in 2027 and double again to $230 billion in 2028. Partnerships with Alphabet, Meta Platforms, Anthropic, and OpenAI are driving this rapid expansion. Broadcom has already secured the supply chain needed to meet these high demand projections.
Broadcom AI revenue doubles again in 2028 forecast
Broadcom expects its AI semiconductor revenue to reach $230 billion by fiscal 2028. This represents a doubling of revenue from the previous year's forecast of $115 billion. The company partners with hyperscalers to build custom chips that offer better performance and lower costs. With a current revenue of $89 billion, this growth would triple the company's total sales over the next two and a half years.
Nvidia Broadcom and Micron are top AI stock picks for 2026
An article from September 9, 2026, suggests that Nvidia, Broadcom, and Micron Technology are the best AI stocks to buy now. Nvidia expects 70% revenue growth next year while trading at less than 15 times next year's earnings. Broadcom plans to double its AI semiconductor revenue in 2027 and again in 2028, serving clients like Alphabet and OpenAI. Micron Technology is considered underpriced at six times next year's earnings, though new production facilities will not be ready until mid-2027 to 2028.
Nvidia Broadcom and Micron are top AI stock picks for 2026
This Motley Fool article from September 9, 2026, identifies Nvidia, Broadcom, and Micron Technology as top performers to end 2026. Nvidia has led the market since 2023 and guides for 70% revenue growth next year. Broadcom is scaling production for major clients including Alphabet, OpenAI, and Anthropic with revenue expected to double in 2027 and 2028. Micron has tripled this year but faces supply constraints until new facilities come online in 2027 or 2028.
Broadcom AI chip sales jump 221 percent to $16.7 billion
Broadcom reported an 85.5% revenue increase in fiscal Q3 2026, driven by a 221% surge in AI semiconductor sales to $16.7 billion. The company supplies custom AI chips to major players like Alphabet, Meta, OpenAI, and Anthropic. Broadcom projects AI chip revenue to reach $21.7 billion in Q4 and aims for $230 billion in AI revenue by fiscal 2028.
Broadcom AI chip revenue rose 221 percent with more growth ahead
Broadcom posted a massive 221% growth in AI semiconductor revenue during the third quarter of fiscal 2027. The company partners with AI hyperscalers like Alphabet, Meta Platforms, Anthropic, and OpenAI to build custom chips. Broadcom expects AI semiconductor revenue to reach $115 billion in 2027 and double again to $230 billion in 2028.
AI security spending rises as hacker threats grow
Companies are increasing cybersecurity budgets in September 2026 due to escalating AI hacking threats. Executives report that large enterprises are allocating more funds to monitor employee AI usage and deploy models to find vulnerabilities. Super Micro Computer Inc faces insider selling of $15.44 million but maintains a strong GF Score of 84 out of 100. Lumen Technologies expects a 30% increase in its cybersecurity budget to incorporate new AI models for scanning.
Sources
- Broadcom Forecasts $230 Billion in AI Semiconductor Revenue in 2028. The Stock Could Reach $900 Per Share as a Result.
- Broadcom Forecasts $230 Billion in AI Semiconductor Revenue in 2028. The Stock Could Reach $900 Per Share as a Result.
- Broadcom vs. Marvell: Which Custom AI Chip Stock Is the Better Buy?
- Broadcom's Artificial Intelligence (AI) Chip Revenue Just Rose 221%. There's More Growth Coming.
- Broadcom's Artificial Intelligence (AI) Chip Revenue Just Rose 221%. There's More Growth Coming.
- Prediction: These 3 Artificial Intelligence (AI) Stocks Will Be the Top Performers to End 2026
- Prediction: These 3 Artificial Intelligence (AI) Stocks Will Be the Top Performers to End 2026
- Broadcom's AI chip sales soar 221% YoY, powering giants like Alphabet and Meta with huge revenue growth.
- Broadcom's Artificial Intelligence (AI) Chip Revenue Just Rose 221%. There's More Growth Coming.
- AI Security Spending Surges Amid Hacker Threats, Impacting Major Firms
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