newsio aggregates and links to original sources. We do not own the original images or content. If you believe content infringes on intellectual property rights, contact us — it will be removed at first notice.
genai/news//Benzinga
According to Tan, demand measured in gigawatts of compute power continues to rise rapidly.
Broadcom reported record AI semiconductor revenue of $10.8 billion in the recent quarter.
KEY POINTS
Broadcom now expects AI semiconductor revenue to reach $56 billion for fiscal 2026.
Demand for compute capacity in gigawatts is growing much faster than Broadcom expected six months ago.
Broadcom projects continued substantial AI infrastructure growth into 2027 and especially 2028.
According to Tan, demand measured in gigawatts of compute power continues to rise rapidly. “That amount of gigawatts required … is growing very fast,” Tan said, referring to the compute capacity needed to support advanced AI models.
The surprise, however, was how much faster that growth is occurring.
“We’re talking about capacity as measured by gigawatt power that are way ahead of what we have expected say six months ago,” Tan added while discussing OpenAI and Anthropic.
Compute Demand Is Accelerating
The comments suggest that demand for AI infrastructure is not merely growing — it is accelerating.
Broadcom has become one of the key suppliers enabling that expansion through its custom AI accelerators and networking products. The company disclosed that AI semiconductor revenue reached a record $10.8 billion during the quarter and expects AI semiconductor revenue to reach approximately $56 billion for fiscal 2026.
Tan also indicated that the growth trajectory extends well beyond next year.
The Road To 2028 Growth
“If you ask about 27 or 28 that will continue to grow,” Tan said. “We expect in fact 28 to be a substantial growth.”
The remarks reinforce a theme that has emerged across the AI ecosystem: despite concerns that spending could eventually slow, the largest AI developers continue to signal a need for more compute, more power and more infrastructure.
For Broadcom, that demand appears to be arriving faster than expected. For investors, it raises a bigger question: if today’s AI leaders are already exceeding infrastructure forecasts, how much larger could the AI buildout ultimately become?
Photo: Tada Images / Shutterstock