Hyperscalers are pouring billions into data centers, and Broadcom, which designs custom AI chips for them, has been one of the biggest beneficiaries. The company has generated about $68 billion in AI semiconductor revenue since late 2023, according to its earnings reports. In its fiscal third quarter, which ended Aug. 2, AI semiconductor revenue more than tripled from a year earlier to $16.7 billion.
But on Monday, Broadcom CEO Hock Tan likened many of the investors drawn to the AI boom to gamblers and questioned the economics of AI labs as Wall Street debates whether the AI bubble will burst.
