Broadcom’s AI Growth Tied to a Six-Client Core List
Broadcom’s AI semiconductor revenue now dominates its quarterly mix (about 49–54%), but the business hinges on six core customers rather than a broad customer base. Key commitments include a long-term OpenAI deployment (1.3 gigawatts in 2027) and Meta’s MTIA X through 2028, with AI bookings far exceeding actual shipments. Management signals that networking remains a growing but shrinking share of the AI line, implying higher concentration risk even as the company remains profitable and valued on a high sales multiple. For investors, the question is whether the stock’s premium is justified by diversification or by a few large buyers driving most future revenue.
