Hock Tan Just Guided Broadcom's AI Revenue to Reach $230 Billion by 2028. Should You Believe Him?

Broadcom CEO Hock Tan projects the company will hit $230 billion in annual AI semiconductor revenue by fiscal 2028, more than tripling current levels. The forecast implies aggressive growth in AVGO's hyperscale custom chip business, where the company supplies Google and Meta with specialized AI accelerators.

The $230 billion target would require compound annual growth exceeding 30% over the next four years. Tan has historically underestimated demand in earnings guidance, lending credibility to the projection. Broadcom has locked in multi-year supply agreements with foundry partners, reducing execution risk on the manufacturing side.

If AVGO achieves the revenue target with a 50% profit margin—consistent with its current AI segment—the stock could deliver 150% upside from present levels based on comparable semiconductor valuations. The company's exposure to custom AI chips for hyperscalers differentiates it from general-purpose GPU makers facing cyclical demand swings.

The guidance arrives as hyperscalers accelerate data center buildouts to support large language models and inference workloads. Broadcom's custom silicon approach captures wallet share from both training and deployment phases of the AI infrastructure cycle.