Key Highlights

  • Broadcom (Nasdaq: AVGO) expects its AI Business to generate over $100 billion in Revenue in fiscal 2027.
  • CEO Hock Tan signals the company is de-prioritising acquisitions as organic AI growth accelerates.
  • AVGO shares remain under pressure after Thursday's forecast disappointed Wall Street.

Broadcom (NASDAQ: AVGO) CEO Hock Tan has signalled a meaningful strategic pivot — and artificial intelligence is at the centre of it.

Speaking at the Bloomberg Tech conference in San Francisco, Tan said Broadcom is now less focused on deal-making because AI revenue is rising fast enough to rival — and potentially surpass — the growth that acquisitions have historically delivered. The company expects its AI segment alone to generate more than $100 billion in sales in fiscal 2027, a figure that underscores why management views organic growth as the more compelling path forward.

Tan described Demand for AI infrastructure as "almost insatiable," pointing to Broadcom's expanding role in supplying networking products and custom accelerators used to build and operate large-scale AI models.

The shift is notable for a company that built much of its scale through transactions — including the acquisitions of VMware, Symantec Enterprise Security, and CA Technologies. For now, though, Tan appears content to let AI do the heavy lifting.

The comments come as AVGO shares remain under pressure following Thursday's sharp 13% selloff, triggered after the company's revenue guidance failed to excite investors despite a fiscal Q2 Earnings beat. Tan addressed the stock reaction directly, saying his focus remains on fundamentals, customer outcomes, and long-term value creation rather than short-term share price movements.