Broadcom Stock Surges on Strong AI Demand Outlook
Broadcom Inc.'s (NASDAQ:AVGO) stock surged nearly 3% on Friday, outperforming a weaker broader market as investors focused on the chipmaker's expanding AI business and CEO Hock Tan's long-term growth outlook.
The Nasdaq slipped 0.04%, while the S&P 500 fell 0.45%, making Broadcom's move stand out. Hock Tan said that demand for AI compute infrastructure remains 'very strong' and durable, particularly for inference.
Broadcom expects its AI semiconductor revenue to reach $115 billion in fiscal 2027 and double to $230 billion in fiscal 2028. Tan emphasized custom silicon, hyperscaler partnerships, and rising infrastructure spending as key drivers of AI growth.
The company's CEO highlighted the potential for generative AI to 'create huge value', but acknowledged the need for safeguards. Broadcom works with six frontier-model developers on custom XPU accelerators and has a long-term agreement to supply Google with TPUs and networking products through 2031.