Broadcom (NASDAQ: AVGO ) Probably the least famous trillion dollar company. It has recently come on the scene, but I think it could be much higher. It is currently the eighth largest company in the world by market capitalization, but after what its CEO said about its growth, it may end up in the top five before we know it.
So, what did Broadcom’s CEO say about the request? Let’s take a look.
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Broadcom as a company does many different things. It has a virtual desktop business through the acquisition of VMware, mainframe hardware and software, cybersecurity, and several other business units. But that is not the focus of investors. Instead, everyone is focused on this AI semiconductor business, and for good reason.
The company has two primary AI semiconductor products: traditional AI chips and connectivity switches. While connectivity switches are critical to data center operations, the big winning investors are focusing on the chip business. This section is on top Nvidiawhich is not an easy task. But it’s a winner.
Rather than offering a GPU that excels in most computing applications, Broadcom designs application-specific integrated circuits (ASICs). These chips are specifically designed to handle a single workload. ASICs are not new, but their use in AI is. Broadcom partnered directly with AI Hyperscaler to design a chip that fits their needs, which lowers costs for the end user because it doesn’t pay for capabilities it won’t use with a GPU.
GPUs are not going away forever because their flexibility is essential in many applications. Still, Broadcom’s custom AI chips could start to take market share from Nvidia as they prove their worth. During Broadcom’s fiscal 2026 first quarter (ending February 1) earnings call, CEO Hock Tan said: “In fact, today, we have a vision to achieve more than $100 billion in AI revenue from chips in 2027.
It is very large, because it does not include the communication switch business and all other business units. In addition, over the last 12 months, Broadcom generated a total of $68 billion. So, by the end of next year, Broadcom’s AI chip business will be bigger than the entire company.
