Broadcom Targets $100 B AI Chip Sales by 2027 as Micron’s Forward P/E Drops to 4.5

TL;DR Broadcom expects $100 billion in AI chip sales by 2027, driven by a $21 billion order from Anthropic, while Micron’s forward P/E drops to 4.5, signaling a cheap valuation amid AI‑fueled memory demand.

Context The so‑called Great Rotation out of tech stocks proved brief as AI spending rebounds. Broadcom (AVGO) and Micron (MU) are two suppliers benefiting from the surge in compute and memory needed for large language models.

Key Facts Broadcom forecasts $100 billion in AI chip sales for fiscal 2027, about five times its AI revenue from the prior year. Anthropic has committed $21 billion of Broadcom chips for delivery this year and extended its TPU partnership with Alphabet and Broadcom. The stock rose 0.62% in the latest session, giving the company a market capitalization near $500 billion.

Micron’s forward price‑to‑earnings ratio, based on fiscal 2027 analyst estimates, stands at 4.5, a level often viewed as undervalued relative to the semiconductor sector’s average forward P/E of around 18. The shares gained 3.03% recently, putting Micron’s market cap close to $100 billion.

What It Means Broadcom’s strength comes from its ASIC expertise, which lets hyperscalers build custom AI accelerators such as Google’s TPUs. The $21 billion Anthropic order reflects growing demand for dedicated inference chips that reduce reliance on GPUs. Micron benefits because AI processors require high‑bandwidth memory (HBM), a DRAM variant that consumes up to three times the wafer area of standard DDR, tightening supply and boosting prices.

Investors should watch whether Broadcom can convert its pipeline into sustained revenue growth and if Micron’s HBM contracts with Samsung and SK Hynix translate into stable earnings beyond the current cycle. The next quarter’s earnings reports and any updates on AI capex from major cloud providers will be key indicators.