Broadcom (AVGO) reported incrementally bullish artificial intelligence commentary around its fiscal 2027 and 2028 revenue guidance and longer-term demand visibility, although the update does not fundamentally change the debate, as fiscal 2028 guidance came in only modestly above buy-side expectations heading into the print, UBS Securities said in a note Thursday.

The company highlighted strong AI momentum across all six XPU customers and said it sees approximately 30 gigawatts of custom AI infrastructure demand across fiscal 2027 and 2028, according to the note.

Consequently, management raised its fiscal 2027 AI revenue outlook to $115 billion from $100 billion and indicated that fiscal 2028 AI revenue could double to $230 billion, roughly $30 billion above UBS' earlier estimate, the note added.

UBS models Broadcom's tensor processing unit share materially above MediaTek's, reaching approximately 6 million TPUs in calendar 2027 and potentially 6.5 million to 7 million in 2028.

The company guided fiscal Q4 revenue to $34.8 billion, largely in-line with UBS and Street expectations, the brokerage said.

UBS kept its buy rating and $470 price target on Broadcom.

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