Broadcom’s chief executive, Hock Tan, has indicated to investors that the company’s artificial intelligence prospects are set to improve “significantly” in fiscal 2026. This announcement aims to alleviate concerns regarding potentially slowing growth. Broadcom is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company’s products serve markets like data centres, networking, software, broadband, wireless, and storage.
During a recent conference call following the release of quarterly results, Tan mentioned that Broadcom is actively collaborating with potential clients to create AI accelerators. This puts them in competition with Nvidia, which currently dominates the market. These AI accelerators are designed to improve the performance of artificial intelligence tasks.
Tan stated that one of these prospective customers has already placed production orders with Broadcom. While he did not disclose the customer’s name, he projected that this new business would lead to a considerable increase in AI revenue for fiscal 2026, exceeding previous forecasts.
Previously, Tan had suggested that AI revenue growth for 2026 would mirror the current year’s rate of 50 per cent to 60 per cent. However, with the addition of a new customer exhibiting “immediate and pretty substantial demand”, he now anticipates that the growth rate will accelerate in a manner that will be “fairly material”.
