Key facts
- Broadcom CEO Hock Tan identified capital, specifically electrical power and data center infrastructure, as the main constraint for AI growth.
- Tan expects Broadcom's AI revenues to reach $115 billion in FY2027 and $230 billion in FY2028.
- He stated that companies like OpenAI and Anthropic are generating substantial revenue from AI models.
- Tan indicated that Broadcom is managing wafer and memory shortages.
Broadcom CEO Hock Tan stated that capital, rather than chip manufacturing, will be the primary bottleneck for continued growth in the artificial intelligence sector. Speaking at a panel in Singapore, Tan indicated that while the company is overcoming shortages of wafers and memory chips, the availability of electrical power and the construction of data center infrastructure present the most significant challenges.
Tan projected that Broadcom's artificial intelligence revenues could reach $115 billion in fiscal year 2027 and double to $230 billion in fiscal year 2028, describing these figures as exceptional. However, he cautioned that realizing this growth depends heavily on overcoming physical infrastructure limitations. He emphasized that provisioning data centers with sufficient power by 2028 requires starting construction and obtaining permits immediately, highlighting the lengthy timelines involved in engineering and building power grids.
The CEO also noted that leading AI labs such as OpenAI and Anthropic are demonstrating their ability to generate substantial revenue from deployed AI models, particularly for AI personal assistants.