Broadcom Stock Soars on Upbeat AI Talk

Broadcom CEO Hock Tan wants some of Jensen Huang’s limelight. Stock of the chip and software firm rocketed 24% on Friday, the day after Tan claimed that the company had a “massive” opportunity in artificial intelligence chips over the next three years. Speaking on an earnings call on Thursday night, he said Broadcom had three customers whose AI chip road map implied a potential market of between $60 billion and $90 billion “in fiscal 2027 alone.” Broadcom was “very well positioned” to grab the “leading” share of that market, he added.

That’s big talk and it got people excited, seeing as Broadcom’s revenue in that part of the market this year was just $12.2 billion. Unfortunately, Broadcom isn’t necessarily about to enjoy an Nvidia-scale revenue explosion. As analysts drilled for more details, Tan clarified that he wasn’t projecting that Broadcom’s revenue would grow to those numbers—just that the “revenue opportunity for us” was that big.