Broadcom Eyes $100B AI Chips
Q1 2026 earnings mixed bag — Broadcom beats expectations, eyes $100B AI chips market (up 6% after-hours). CooperCompanies hit revenue of $1.02B and beat FY EPS guidance $4.58-4.66. But Ciena beats Q1 while FY guidance of $6.1B vs. $6.99B estimate sent shares down 3-6%.
Broadcom's projection to surpass $100 billion in AI chip revenue by 2027 marks a significant escalation from the $20 billion in AI sales reported for all of 2025. The forecast follows a first quarter where AI infrastructure revenue alone hit a record $8.4 billion, a 106% increase year-over-year. The company's growth is heavily reliant on its custom silicon business, which designs specialized AI accelerators for tech giants. Broadcom has confirmed high-profile partnerships with OpenAI, Anthropic, Google, and Meta to develop and supply these custom chips. Financially, Broadcom is signaling confidence by authorizing a new $10 billion share repurchase program. For its upcoming second quarter, the company anticipates AI semiconductor revenue will reach $10.7 billion. The negative market reaction to Ciena's guidance overshadowed a record-breaking first quarter. The company posted its highest-ever quarterly revenue of $1.43 billion, up 33% from the previous year, while its adjusted earnings per share more than doubled to $1.35. Ciena's stock fell because its full-year revenue forecast of $5.9 billion to $6.3 billion disappointed investors.
