Broadcom Raises AI Revenue Guidance: $230 Billion by Fiscal Year 2028

Broadcom has raised its AI business revenue guidance to $580 billion for fiscal year 2026, representing 186% year-over-year growth, and projects AI revenue will reach $2.3 trillion by fiscal year 2028. CEO Hock Tan announced the aggressive guidance during the company's third-quarter earnings call, saying that AI infrastructure orders for 2027 are already fully booked and commitments for 2028 are coming in ahead of schedule. Broadcom's semiconductor business is benefiting from massive hyperscaler investments in custom AI accelerators and networking infrastructure. The company's third-quarter revenue reached $29.59 billion, up 86% year-over-year. Dell also raised its full-year guidance citing strong AI server demand, sending its shares up 15.81% in after-hours trading. Broadcom's custom AI chip business for clients like Google and Meta has emerged as a significant growth driver beyond its traditional networking and semiconductor portfolios.