Broadcom Flags Supply Limits as AI Revenue Jumps to $230 Billion

Broadcom's CEO Hock Tan outlined a bullish long-term AI story at the Goldman Sachs Communacopia + Technology Conference, but also flagged real-world limits to growth. The company expects AI revenue to reach $115 billion in 2027 and $230 billion in 2028, but these figures are supply-constrained rather than demand-limited.

The main bottleneck is not semiconductor manufacturing, but the availability of power sites, grid capacity, and data center infrastructure. Broadcom is working closely with six frontier model developers, including OpenAI and Google, on custom XPU accelerators.

Tan said value in AI is likely to keep flowing to frontier model developers as their models improve. The company expects strong free cash flow and plans to discuss capital returns at its December annual meeting.