Broadcom is on track to potentially join the $3 trillion market cap club by the end of 2027, with its AI semiconductor revenue rapidly growing. Wall Street analysts predict a 52% revenue growth rate for fiscal year 2026 and an additional 38% for fiscal year 2027.

Nvidia has been a dominant force in the AI computing world with its GPUs, but Broadcom is challenging this by developing custom AI chips tailored to specific workloads. This strategy has led to a significant increase in demand, with a 74% rise in AI semiconductor revenue in Q4 2025 and an expected 100% growth in Q1 2026.

Despite rapid growth in AI semiconductor revenue, Broadcom’s overall business is diverse, with AI semiconductor revenue not yet the largest segment. However, analysts expect significant revenue growth for the company, projecting an increase from $64 billion in fiscal 2025 to $133 billion by fiscal 2027.

As global data center capital expenditures are projected to rise to $3-4 trillion annually by 2030, Broadcom’s custom AI chips are expected to capture a significant market share. This expansion could propel Broadcom to a $3 trillion market cap by the end of 2027, with the potential for even more growth by 2030.

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Keithen Drury, a contributor to The Motley Fool, holds positions in Alphabet, Broadcom, Microsoft, and Nvidia. The Motley Fool also has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia, while recommending Broadcom. The publication’s disclosure policy is available for reference.

Read more at Yahoo Finance: Broadcom Will Be a $3 Trillion Company by the End of 2027