Broadcom eyes $100B AI chip revenue by 2027 with strong margin outlook despite supply risks

Broadcom projects AI chip revenue to exceed $100 billion by 2027, growing over 123% from $24.5 billion currently. The company expects AI rack deployments to sustain or improve its semiconductor gross margins, forecasting a 77% margin in Q2 FY26 despite rapid AI expansion. However, supply chain issues at TSMC and shortages in components like lasers and PCBs may delay revenue growth. Broadcom's stock trades at a slight discount to peers, with rising earnings expectations and strong technical momentum suggesting potential near-term gains.