Revenue projections

Broadcom CEO Hock Tan remains confident in long-term AI revenue despite concerns over development slowdowns. He dismissed investor jitters, citing strong demand for compute infrastructure, AI development, and inference. Tan projects substantial growth in Broadcom’s AI semiconductor business, with Anthropic becoming a major custom chip customer. While acknowledging AI governance needs, he emphasizes AI’s potential to boost productivity and improve quality of life, likening its impact to the Industrial Revolution.

Arm Holdings is pivoting from IP licensing to chip manufacturing with its new AGI CPU, targeting the booming agentic AI market. CEO Rene Haas projects $25 billion in annual revenue by 2031, a significant leap from current figures, with Meta as the first customer. This strategic shift aims to capture greater value in the AI hardware sector, offering customers more choice and expanding Arm’s addressable market.

OpenAI projects over $20 billion in annualized revenue this year, aiming for hundreds of billions by 2030. CEO Sam Altman emphasizes massive infrastructure expansion to meet AI model demand, with reported deals exceeding $1.4 trillion. CFO Sarah Friar’s suggestion of a potential federal “backstop” for semiconductor investments sparked controversy and was later clarified, with OpenAI asserting they do not seek government guarantees for data centers, relying instead on private sector investment. Analysts highlight the risks and competition in OpenAI’s aggressive expansion strategy.