Broadcom(US:AVGO) Yahoo Finance·2026-03-17 15:05Industry Overview - Artificial intelligence (AI) is driving significant growth in data center infrastructure, with the global data center networking market projected to increase from approximately $39.5 billion in 2025 to over $93 billion by 2032 [1] Company Insights: Broadcom - Broadcom has established itself as a key supplier of networking technology, including switches and high-speed interconnect chips, essential for connecting processors in AI data centers [4] - In the first quarter of fiscal 2026, Broadcom's AI revenue surged 106% year over year to $8.4 billion, with AI networking contributing about one-third and growing 60% year over year [5] - Management anticipates AI revenues to reach around $10.7 billion in the second quarter, with networking expected to account for nearly 40% of AI revenue [5] - CEO Hock Tan has projected over $100 billion in AI chip revenues for 2027, supported by long-term partnerships with six major AI customers and secured supply capacity through 2028 [6] - If AI networking maintains a 33% to 40% share, it could result in AI networking revenues of $33 billion to $40 billion by 2027 [6] - Broadcom's Tomahawk 6 switch is experiencing strong demand, and the company expects to continue leading the AI networking sector with the upcoming Tomahawk 7, which will offer double the performance of its predecessor [7]