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Broadcom's CEO Hock Tan Projects $60-90 Billion AI Revenue by 2027, Shares Surge

Dec 16, 2024, 02:56 PM

Broadcom Inc. has announced ambitious plans for the future of AI technology, including the development of AI GPU clusters featuring one million GPUs by 2027 and the deployment of three new AI supercomputers. The company's CEO, Hock Tan, highlighted a 'massive' opportunity in the AI market, projecting a revenue potential from AI in the range of $60 billion to $90 billion in fiscal 2027. This outlook is driven by the demand for Broadcom's custom AI chips, known as XPUs, from hyperscale customers who plan to deploy millions of these clusters. Broadcom's shares surged over 24% following the announcement, propelling the company into the elite group of firms with a market capitalization exceeding $1 trillion. The company's focus on AI and its strategic acquisitions, such as VMware, have significantly contributed to its growth, with AI revenue growing by 150% in the last fiscal quarter to $3.7 billion.