A Broadcom sign in San Jose in September, 2025.Brittany Hosea-Small/Reuters
Chip designer Broadcom AVGO-Q forecast second-quarter revenue above Wall Street estimates on Wednesday, a sign of strong demand for advanced chips used in data centres powering artificial intelligence applications.
The company expects quarterly revenue to be about US$22.0-billion, above analysts’ average estimate of US$20.56-billion, according to data compiled by LSEG.
“Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be US$10.7-billion in Q2,” CEO Hock Tan said in a statement.
Big Tech firms like Alphabet, Microsoft, Amazon and Meta are expected to spend at least US$630-billion to build AI infrastructure this year, which would boost demand for chips, servers, storage and networking equipment from companies like Broadcom.
Broadcom said last month that it expects to sell at least one million chips by 2027 based on its stacked design tech, marking a new product and a sales target that could represent a revenue stream potentially worth billions of dollars.
The company’s stacking approach gives its customers the ability to build chips that have more horsepower and use less energy to tackle the rapidly growing computing requirements that AI software presents.