Broadcom CEO Hock Tan revealed on June 5 that the semiconductor giant is pivoting away from its acquisition-heavy playbook in favor of organic growth, driven almost entirely by surging AI demand.
The numbers behind the pivot
Broadcom reported roughly $20 billion in AI semiconductor revenue for fiscal year 2025, a 65% increase year-over-year. That figure sat inside a broader revenue base of approximately $64 billion, meaning AI already accounts for nearly a third of the company’s total business.
Broadcom projects its AI semiconductor revenue will surpass $100 billion in fiscal 2027. Broadcom’s entire revenue last year was $64 billion. If the AI projection holds, the company’s chip business alone would dwarf its current total operations.
Why the acquisition machine is slowing down
