Broadcom estimates revenue from its three existing hyperscale customers will range from $60 billion to $90 billion in 2027, up from $12.2 billion in 2024. In other words, the company anticipates that custom AI chip sales will increase at least 70% annually in the next three years, but perhaps as quickly as 95% annually.

Broadcom Inc.'s stock surged 35% despite a mediocre Q4, as management offered investors a picturesque addressable market forecast for 2027. Read why AVGO is a Hold.

One analyst noted that the type of AI chip Broadcom makes could pick up market share relative to “costly” graphics processing units.