Broadcom Inc. announced that it expects its artificial intelligence chip revenue to exceed $100 billion by 2027, marking a significant milestone for the semiconductor company's AI business segment.

The projection was disclosed by CEO Hock Tan during the company's earnings report, reflecting strong demand for custom AI chips from major technology companies. The forecast represents substantial growth from the company's current AI chip revenue levels.

Broadcom's AI chip business has been experiencing robust demand as companies across various industries increase their investments in artificial intelligence infrastructure. The company specializes in designing custom semiconductors tailored to specific AI applications and client requirements.

The announcement led to a rally in Broadcom's stock price as investors reacted positively to the bullish revenue projections. The company's custom AI chip division has become an increasingly important growth driver for the business.

Broadcom's forecast aligns with broader industry trends showing accelerating demand for AI-specific hardware as organizations deploy more sophisticated machine learning and artificial intelligence systems. The semiconductor industry has seen increased competition and investment in AI chip development as the technology becomes more mainstream across enterprise and consumer applications.