What is driving Broadcom's potential future growth?

Increased capital expenditure by hyperscalers, especially for AI infrastructure, is driving Broadcom's projected growth.

When might Broadcom update its AI SAM estimate?

Broadcom may update its AI Serviceable Addressable Market estimate around its December 11 earnings release or in early 2026.

How has Broadcom performed during the semiconductor pullback?

Broadcom has shown relative strength, with a smaller decline compared to industry benchmarks like the iShares Semiconductor ETF.

Home / Business and Economy / Hyperscalers Fuel Broadcom's Future

Hyperscalers Fuel Broadcom's Future

24 Nov

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Summary

Hyperscaler capital expenditure is projected to increase by 36% by 2026.
AI infrastructure investments are expected to drive significant growth.
Broadcom's AI Serviceable Addressable Market could be updated soon.

Broadcom's outlook is bolstered by projections of substantial growth in hyperscaler capital expenditures. CreditSights forecasts a 36% increase to $602 billion by 2026, primarily driven by significant AI infrastructure investments. This surge in spending expands Broadcom's addressable market for its custom accelerators and networking chips.

Further analysis indicates that AI-specific CapEx could represent 75% of this total, suggesting an even more robust growth rate for Broadcom. While these are third-party estimates, Broadcom may soon update its own AI Serviceable Addressable Market (SAM) figures, currently between $60 billion and $90 billion.

Such an update, potentially following its December 11 earnings release or early 2026, could serve as a significant upside catalyst. Despite a recent 10% dip, Broadcom has demonstrated relative strength compared to the broader semiconductor market.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.