Broadcom Projects AI Revenue to Reach $58B This Year

Key Takeaways

• Broadcom expects AI revenue to hit $58 billion this year and $230 billion by fiscal 2028
• CoreWeave has a $104 billion contract backlog and expects $12.4B-$13.2B revenue in 2026
• Google Cloud grew 82% to $24.77 billion, outpacing Microsoft Azure and Amazon AWS
• Applied Materials turned a $1,000 investment into $18,924 over 10 years on AI chip demand
• China built over 300 data centers in the past year while the US lagged behind
• OpenAI solved the Navier-Stokes problem using a swarm of about 10,000 AI models
• Anthropic's IPO may value the company at $2 trillion despite $42 billion in net losses
• Exposed AI infrastructure on the internet surged 63% to 2.3 million between January and September
• Microsoft partners with Gateway to offer free AI workshops starting October 13, 2026
• Clueso raised $10M to build an agentic video platform used by over 1,000 companies

Broadcom CEO warns AI investors act like gamblers

Broadcom CEO Hock Tan compared many AI investors to casino gamblers who do not understand their investments. He also warned that a shortage of capital, not chips, could become the next major problem for the AI industry. Despite these warnings, Broadcom expects AI revenue to reach $58 billion this year and $230 billion by fiscal 2028. The company recently reported AI semiconductor revenue of $16.7 billion last quarter. Tan noted that some corporate AI projects spend money quickly without learning much.

CoreWeave stock could be one of the decade s biggest winners

Analysts at 24/7 Wall St. predict CoreWeave stock could rise to $163.68, representing a 99.79% gain from its current price. The company has a massive backlog of $104 billion in contracts and expects revenue between $12.4 billion and $13.2 billion in 2026. Although CoreWeave carries heavy debt and reported a net loss of $626 million in the second quarter, its cash flow improved significantly. The stock has fallen 17.93% in the past month but remains up 14.41% for the year so far.

Alphabet cloud growth beats rivals despite heavy debt

Alphabet's Google Cloud business grew 82% in the second quarter to reach $24.77 billion in revenue. The company now has a signed backlog of $514 billion in contracts, which provides a clear view of future spending. Alphabet's cloud division is growing faster than Microsoft Azure and Amazon AWS while trading at a much lower valuation. However, the company raised its long-term debt to $98.2 billion and suspended stock buybacks to fund expansion.

Applied Materials stock turned $1,000 into nearly $19,000

An investment of $1,000 in Applied Materials ten years ago is now worth $18,924.60, a return of 1,792% driven by strong demand for AI chips. The company reported record fiscal third-quarter revenue of $9.1 billion, which was 25% higher than the same period last year. Applied Materials supplies the tools chipmakers need to build processors, and customers are sharing forecasts extending to 2030. Despite this success, the stock has fallen 11.95% over the past week.

China builds hundreds of data centers while US lags

China has built over 300 data centers in the past year while the United States has only built a handful. Beijing is using this rapid expansion to gain an advantage in the global race for artificial intelligence dominance. These data centers serve as the essential infrastructure needed to power advanced AI systems. The United States is currently struggling to keep up with China s fast pace of construction.

AI data centers fuel debate in Nevada governor's race

AI data centers are expanding rapidly, raising concerns about electricity use, water consumption, and environmental impact. In Nevada, the issue has become a major debate in the governor's race. Republican Joe Lombard criticizes the state's loose regulations, while Democrat Steve Sisolak supports data centers only with environmental safeguards. The dispute highlights broader questions about how governments should oversee the growing industry.

OpenAI's Navier-Stokes proof takes unexpected path

OpenAI published a 166-page proof solving the famous Navier-Stokes problem using an agent swarm of about 10,000 AI models. The approach differs from the so-called Spanish program that experts initially expected. Mathematicians are now studying the Lean code and paper to understand the reasoning. OpenAI later admitted it did not fully understand its own model's proof.

Iran warns of attacks on AI data centers and undersea cables

Iran's national security leader warned that conflict could lead to the destruction of undersea internet cables and digital infrastructure. Prediction market Polymarket shows a low probability of Iran damaging cables by October 31 at 6 percent, rising to 14 percent by December 31. Experts note Iran appears to be exercising restraint in its threats.

Meta's Muse AI agent raises concerns over explicit chats

Meta's AI agent Muse can produce explicit sexual messages when prompted by adult users, according to WIRED. Meta says Muse is intended for users 18 and over and permits legal adult conversations. Experts warn that such features could attract hackers or scammers seeking to extort users. The incident adds to ongoing concerns about safety in AI chatbots.

Anthropic IPO may value company at $2 trillion despite losses

Anthropic, creator of the Claude AI model, may reach a $2 trillion market value in its upcoming IPO. In 2025, the company earned $4.6 billion in revenue but posted $42 billion in net losses and $8 billion in operating losses. Much of the spending goes toward computing power for AI training. Anthropic also acknowledges risks that advanced AI could threaten humanity.

AI systems exposed on internet surge 63% in nine months

A Censys report found that exposed AI infrastructure on the internet grew from 1.4 million to 2.3 million between January and September. Most exposed systems are in the United States, followed by China and Russia. The finance and technology sectors are most affected. Cybersecurity experts warn this growth makes it easier for hackers to attack vulnerable systems.

Microsoft and Gateway launch free AI workshops at iMET

Microsoft is partnering with Gateway to offer free AI training to the public starting October 13, 2026. The workshops will teach basics of machine learning, natural language processing, and computer vision. Participants will learn to build AI models and solve real-world problems. The program responds to growing demand for AI skills across industries.

Clueso raises $10M to automate business video production

Clueso raised a $10M Series A led by Dharana Capital to build its agentic video platform for businesses. Total funding reaches $12 million with over 80% of new capital from existing investors. More than 1,000 companies use Clueso including Atlassian, Zendesk, and Gainsight. The platform uses computer agents to capture footage, handle scripts, voiceovers, and edits automatically.

Templafy discusses agentic document generation and enterprise AI

Templafy is an agentic document generation platform used by over 4 million users worldwide. It combines AI with rules-based automation to create accurate and compliant business documents. Chief Sales Officer Jean-Marc Chanoine discussed how the company positions itself as a governance layer between AI models and finished documents. Templafy helps enterprises create proposals, contracts, presentations, and reports with approved content and company knowledge.

Sources

• Broadcom’s CEO Just Compared AI Investors to Gamblers
• Prediction: CoreWeave Could Be One of the Most Explosive AI Stocks of the Decade
• Alphabet’s Rapid Cloud Expansion AI Wins Matter But I Keep Buying For Something Else
• This Overlooked AI Stock Turned $1,000 Into $18,924 and Crushed the Market
• The US is fighting over data centers. China is building them. Fast
• AI data centers are coming for federal land. They're roiling the Nevada governor's race
• OpenAI's blockbuster Navier-Stokes proof isn't what we thought it was
• Iran Threatens AI Data Centers, Undersea Internet Cables: Prediction Market Weighs Likelihood
• Meta Muse AI agent sexting raises security concerns
• Anthropic's IPO Could Value It at $2 Trillion Even as Its Losses Hit $42 Billion
• Exclusive: AI's growing internet footprint
• Basics of Artificial Intelligence Offered at iMET
• Clueso raises $10M to automate business video
• Templafy: Interview With Chief Sales Officer And GM Of Americas Jean-Marc Chanoine About Agentic Document Generation And Enterprise AI