Broadcom Reaffirms $230 Billion AI Revenue Target by FY28, According to Goldman Sachs

According to Chaoxiang Research, a Goldman Sachs report dated September 8, 2026, Broadcom reiterated its FY27/FY28 AI revenue targets of $115 billion and $230 billion at the Communacopia conference, emphasizing that supply, not demand, is the primary constraint. Data center land, power, and infrastructure construction represent the true bottlenecks for AI deployment, while supply chain constraints remain relatively manageable. Broadcom’s $35 billion partnership with Blackstone and Apollo’s XPV can support over 20 gigawatts of AI computing capacity while limiting Broadcom’s direct financial liabilities. Each gigawatt of AI cluster generates approximately $3 billion in annual revenue and incurs about $1 billion in annual operating costs. Broadcom believes that the majority of AI’s economic value flows to owners of frontier models. Annual industry spending on training is approximately $200 billion, with frontier models accounting for roughly 75% of industry revenue ($120 billion in revenue against $100 billion in costs), while open-source models generate only about $30 billion in revenue despite comparable investment levels. Goldman Sachs maintains a Buy rating with a price target of $540, based on a 30x multiple on normalized EPS of $18, implying approximately 51% upside from the current stock price.