Goldman Sachs: Broadcom Reiterates AI Revenue Target of 230 Billion, 1GW Cluster Generates 30 Billion Annually

TechFlow reports, according to Chaoxiang Research, Goldman Sachs' September 8, 2026 research report states that Broadcom reiterated its FY27/FY28 AI revenue targets of $115 billion/$230 billion at the Communacopia conference, emphasizing that supply is the primary constraint rather than demand. Data center land, power, and infrastructure construction represent the true bottlenecks for AI deployment, while supply chain constraints are relatively manageable. Broadcom's $35 billion XPV partnership with Blackstone and Apollo can support over 20 gigawatts of AI compute capacity while limiting Broadcom's direct financial liabilities. A 1-gigawatt AI cluster generates approximately $30 billion in annual revenue and incurs around $10 billion in annual operational costs.

Broadcom believes the economic value of AI primarily flows to frontier model owners. Industry training expenditures amount to approximately $200 billion annually, with frontier models contributing 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. Goldman Sachs maintains a Buy rating with a $540 target price, based on 30x normalized EPS of $18, implying approximately 51% upside from the current share price.