Broadcom's AI Revenue Surge Defies Competitive Rumblings

Broadcom projects record AI revenue, secures leadership through 2030, and maintains market dominance despite potential diversification by key partner Google.

A report that Google is in talks with Marvell Technology over new AI chips sent a ripple through the semiconductor sector, raising questions about the future of a key partnership for Broadcom. Yet, beneath the surface of this potential diversification, Broadcom's own financial and strategic foundations appear more unshakable than ever, powered by record-breaking AI revenue forecasts and a pipeline of deals stretching to the end of the decade.

The company’s upcoming annual meeting in Palo Alto on April 20 is set against this backdrop of explosive growth. Shareholders will vote on the election of eight directors, the ratification of PricewaterhouseCoopers as auditor, and the approval of an executive compensation plan that ties over 90% of CEO Hock Tan’s pay to long-term, stock-based performance targets, securing his leadership through fiscal 2030. Director Eddy W. Hartenstein will step down upon the expiration of his term.

Financial Firepower and Market Dominance

Broadcom’s financial metrics tell a story of staggering momentum. For the full fiscal year 2025, the company posted record revenue of $63.9 billion, with AI semiconductor sales jumping 65% to $20.2 billion. The current quarter is projected to deliver $22 billion in total revenue, a 47% year-over-year increase, with AI-related revenue targeted to hit $10.7 billion—a surge of 140%.

Analysts are racing to keep up. Mizuho’s Vijay Rakesh, after a meeting with CEO Hock Tan, reaffirmed his Outperform rating. He now sees consensus AI revenue for 2027 reaching approximately $120 billion, up from an estimate of $100 billion at the start of the year, with $132 billion possible for 2028. For 2026 alone, Mizuho analysts estimate Broadcom’s relationships with just Google and Anthropic will bring in about $21 billion in AI revenue, potentially doubling to $42 billion the following year.

The Google Dynamic and a Shifting Landscape

The reported discussions between Google and Marvell, detailed by The Information on April 19, 2026, involve two chips: a memory processing unit to work with Google’s Tensor Processing Units and a new TPU for AI inference. This move aligns with the industry's pivot from training to inference, a continuous process that scales with user demand.

However, this does not signify a break with Broadcom. In April 2026, Broadcom itself filed an 8-K confirming a long-term agreement with Google for the development of future TPU generations. A separate supply agreement for networking components runs through 2031. The strategy mirrors a multi-vendor architecture common in other industries, designed to prevent over-reliance on a single supplier.

Broadcom’s position in the custom chip, or ASIC, market remains formidable. TrendForce expects the ASIC market to grow 45% in 2026, compared to 16% for GPU shipments. Counterpoint Research forecasts Broadcom will command about 60% of the AI accelerator market by 2027, with Marvell taking roughly 25%. The total market is projected to swell to $118 billion by 2033.

Beyond Google: A Broader Portfolio of Power

While partnerships with Meta and Google garner headlines, collaboration with OpenAI represents a significant, underappreciated driver. Broadcom is co-developing custom AI accelerators with the ChatGPT maker for a capacity of ten gigawatts, with deliveries slated to begin in the second half of 2026 and conclude by the end of 2029.

Rakesh also pointed to another major project launching in 2027, with Anthropic as a customer. J.P. Morgan analyst Harlan Sur estimates the Meta agreement alone could be worth $12 to $15 billion in revenue for Broadcom, including networking components. He maintains a $500 price target on the stock.

This potent mix of deals and design wins underpins Broadcom’s unique dual role as both a chip designer and the supplier of the networking backbone that holds AI data centers together—a combination Marvell cannot replicate.

Market Performance and Risks

Investors have taken note. Broadcom’s stock has gained approximately 26% over the past 30 days, trading about 19% above its 50-day moving average and just 3.5% below its 52-week high at €340.95. The Relative Strength Index reading in the low 70s suggests the rally may have pushed the stock into overbought territory in the near term.

A persistent risk remains the company’s exposure to China, which accounted for over 20% of total revenue in 2024. While semiconductors are currently exempt from new U.S. tariffs, that status could change. The market’s next major checkpoint will be Broadcom’s Q2 earnings release in early June, which will test the validity of its $22 billion quarterly forecast. For now, the company’s AI engine shows no signs of downshifting.