Broadcom targets $120B in AI sales by 2030 as OpenAI orders $10B in custom chips

Broadcom's AI Chip Push: What Sales Teams Should Do Now

Broadcom (AVGO) is leaning hard into AI chips and setting a bold target: $120B in AI product sales by 2030. The board extended CEO Hock Tan's contract with stock incentives tied to that milestone.

Custom AI accelerators are already paying off, driving record revenue in Q3 FY2025. Broadcom reportedly secured a major new client, OpenAI, with orders near $10B for custom chips. Analysts keep a strong buy stance with about 11.6% upside potential.

Quick recap

• Strategy: Double down on custom AI accelerators to compete with Nvidia.
• Incentive: CEO compensation tied to $120B AI sales by 2030.
• Demand: Reported $10B custom chip orders from OpenAI.
• Momentum: Record Q3 FY2025 revenue driven by AI.
• Market view: Strong buy consensus, ~11.6% upside.

Why sales teams should care

• Budgets are shifting: Enterprises are funding AI training and inference at scale. That creates pull-through for networking, storage, compute, and services.
• Custom silicon = larger deals: Multi-year, high-commit spend with executive visibility. Great fit for programmatic account strategies.
• Vendor diversification: Some buyers want options beyond Nvidia. Position choice, supply assurance, and TCO.
• Co-selling paths: Opportunities with Broadcom, hyperscalers, OEMs, and integrators.

Signals your accounts will show

• Hiring for AI infrastructure, silicon, or HPC roles.
• RFPs mentioning "custom accelerators," "LLM training clusters," or "co-design."
• Capex guidance tied to AI infrastructure in earnings calls.
• Early partnerships with Broadcom or references to ASIC roadmaps.
• Data center build-outs, high-bandwidth networking, or advanced packaging needs.

Who to target

• Accounts: Hyperscalers, large SaaS, fintech, ad-tech, pharma, telco, and on-prem enterprises training LLMs.
• Buyers: CIO, CTO, VP Infrastructure, Head of AI/ML Platform, Procurement, and Finance.
• Influencers: Chief Architect, Networking/Storage leads, Data Center ops.

Talk tracks you can use

• TCO and performance fit: Custom accelerators can align with workload profiles and lower total cost at scale.
• Time-to-capacity: Co-design sprints and supply planning reduce delays to productive compute.
• Integration: Tie AI chips to networking, interconnect, storage, and observability for end-to-end outcomes.
• Risk management: Vendor mix and long-term commitments that match training roadmaps and model refresh cycles.

Objections you'll hear (and simple responses)

• "Custom equals risk." Reference co-design programs, reference designs, and staged pilots with clear exit criteria.
• "We're standardized on Nvidia." Offer a dual-track plan: retain current stack while testing targeted custom workloads for cost/perf gains.
• "Supply constraints worry us." Emphasize capacity planning, multi-year agreements, and aligned delivery windows.
• "Integration complexity." Bundle services, validated hardware, and support SLAs. Reduce friction, not just price.

Timing and deal structure notes

With record Q3 FY2025 AI revenue and large reported orders, near- to mid-term demand looks strong. Expect multi-phase deals: pilot → limited production → scaled rollout, often crossing fiscal years. Build your pipeline for longer cycles and executive approvals.

Plays for partners and ISVs

• Bundle networking, storage, interconnect, and monitoring with AI chips for complete solutions.
• Offer migration services, MLOps integration, data pipeline readiness, and cost governance.
• Provide financing or consumption models that match model training waves.

Actions to take this quarter

• Map top 50 accounts by AI training needs; identify buyers and influencers.
• Engage Broadcom partner and OEM channels for deal intel and reference wins. Review updates on Broadcom investor relations.
• Create a 2-page briefing: use cases, TCO math, and a clear pilot plan with success metrics.
• Build a co-selling checklist: capacity planning, integration scope, SLAs, financing options.
• Stand up a repeatable discovery script and objection-handling guide for your team.
• Level up AI fluency for sellers and SEs with role-based training: AI courses by job.

Bottom line

Broadcom's AI push opens big-ticket, multi-year opportunities. If you sell into infra, AI platforms, or data center stacks, now is the time to position, partner, and get in front of budget cycles.