Prediction: Custom Silicon Will Be the Next Boom Within the AI Supercycle. 1 Growth Stock to Own.

Broadcom (AVGO) reported AI revenue growth of 221% to $16.7 billion in its latest quarter, and management is projecting AI sales will reach $230 billion by fiscal 2028. That trajectory anchors the bull case for custom silicon as a distinct leg of the AI buildout.

The thesis: custom AI processors (ASICs) are expected to account for more than one-third of AI compute by 2030, shifting share away from GPUs. AVGO designs custom chips for a roster of major customers, including Alphabet (GOOGL, GOOG), Meta (META), OpenAI, and Anthropic.

Interpretation, not sourced fact: customer concentration cuts both ways. Alphabet and Meta are both named buyers of AVGO's custom designs, so AVGO's growth is tied to their spending decisions. The same customer base also means any capex pullback at those firms would flow directly into AVGO's order book.

The $230 billion fiscal 2028 target is management's projection, not a reported result. Moving from $16.7 billion in a single quarter to that level requires sustained hypergrowth, so the 221% growth rate is the figure the market will measure against.