During a CNBC interview, Broadcom CEO Hock Tan addressed investor concerns following Anthropic CEO Dario Amodei's essay advocating for a moderation in AI model development. Tan emphasized that Broadcom's forecasts for AI semiconductor revenue—projected at $115 billion for fiscal 2027 and $230 billion for fiscal 2028—remain unchanged.
This confidence comes despite a 4.8% drop in Broadcom's shares and a 5.6% decline in the iShares Semiconductor ETF, as investors reassess demand for AI infrastructure. Tan noted that Anthropic is expected to become Broadcom's largest custom chip customer by 2027, highlighting the significance of this relationship.
He acknowledged the need for governance in AI development but maintained that the demand for AI inference, the practical application of trained models, will continue to grow. Tan likened the transformative potential of AI to the Industrial Revolution, suggesting that it will enhance productivity and improve living standards