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Broadcom CEO defends $350B AI chip outlook amid AI pacing debate
Broadcom guided to $115B of AI chip revenue for fiscal 2027 and $230B for fiscal 2028, arguing inference demand remains durable even as some warn about frontier training speeds.
Concerns about security and how quickly artificial intelligence capabilities could evolve have reignited debate over whether the industry should slow frontier model progress. After Anthropic CEO Dario Amodei published a call to “pace the frontier” on Sept. 14, MarketBeat Ratings says AI-related stocks sold off, with Broadcom shares down 4.8% and Astera Labs falling more than 10%.
In response to questions about how “AI pacing” could affect its plans, Broadcom CEO Hock Tan defended the company’s roughly $350 billion AI semiconductors outlook over the next two years. According to MarketBeat Ratings, Tan said Broadcom expects to ship $350 billion of AI chips to customers in the next two years with a high degree of confidence and indicated the debate has not changed that forecast.
Broadcom’s most recent guidance also anchors the outlook. MarketBeat Ratings reports Broadcom guided for $115 billion of AI chip revenue in fiscal 2027 and $230 billion in fiscal 2028.
Tan drew a distinction between training and inference in explaining why demand may hold up. MarketBeat Ratings says he argued compute demand for both training and inference remains strong and durable, but later emphasized that when the goal is to productize inference, demand should continue to be “very, very strong,” implying any industry slowdown would be more likely to pressure training-oriented spend.