- Broadcom shares fell 4.8% on September 14 as the broader semiconductor industry sold off following Anthropic CEO Dario Amodei's weekend essay proposing a deliberate restriction on the pace of AI progress; the iShares Semiconductor ETF fell 5.6% the same day.
- CEO Hock Tan told CNBC's Jim Cramer that Broadcom's long-term AI revenue projections had not changed, standing behind the $115 billion FY27 and $230 billion FY28 targets he set on the September 2 fiscal Q3 call.
- Anthropic is on track to become Broadcom's largest custom silicon customer in 2027 and hold that position through 2028, with committed plans to deploy 5 gigawatts of Broadcom's next-generation TPU v8i chips in 2027 and a path to an additional 10 gigawatts in 2028.
- Broadcom's stock has repeatedly moved on the gap between guidance and expectations rather than reported results: in June, record revenue and triple-digit AI sales growth failed to prevent a 12% single-day drop because Tan reaffirmed rather than raised the existing $100 billion AI target.
- Broadcom declared a $0.65 per share dividend payable September 30 to holders of record by September 21, its 15th consecutive annual increase, supported by free cash flow that significantly exceeds dividend payments.
- Hedge fund ownership in Broadcom slipped from 173 holders in Q1 to 170 in Q2, with short interest at a low 1.08% of float, indicating limited downside positioning despite the AI-slowdown volatility.
Quotes
“On that same day, CEO Hock Tan told CNBC's "Mad Money" host Jim Cramer that the company's long-term AI revenue projections had not changed.”
“He stated at the time that Anthropic is on track to become Broadcom's largest custom chip customer in 2027 and keep that position through 2028, with plans to deploy 5 gigawatts of Broadcom's next-generation TPU v8i chips in 2027 and a clear path to another 10 gigawatts in 2028.”
“Broadcom CEO Hock Tan promptly reiterated that the company's long-term AI revenue targets, including $115 billion for fiscal 2027 and $230 billion for fiscal 2028, remain unchanged”
“The company has consistently raised its dividend for 15 consecutive years, boasting a 29% compound annual growth rate over the last decade, supported by robust free cash flow which significantly exceeds dividend payments”
Sources
- “Our Targets Haven’t Changed”: Broadcom’s CEO Pushes Back on the AI Slowdown Scare
- Own Broadcom by Sept. 21 to Qualify for Its Sept. 30 Dividend. Here's How Many Shares You'd Need for $5,000 in Yearly Dividends.
- “Our Targets Haven’t Changed”: Broadcom’s CEO Pushes Back on the AI Slowdown ScareYahoo Finance