“Today, in fact, we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027.”

In context

“t me explain. In scale-out, our first-to-market Tomahawk 6 switch at 100 terabit per second as well as our 200G SerDes are capturing demand from hyperscalers, whether they use XPUs or GPUs this year. This lead will extend in '27 with our next-generation Tomahawk 7 featuring double performance. Meanwhile, in scale-up, as cluster sizes and our customers expand, we are uniquely positioned to enable these customers to stay on direct attached copper through our 200G SerDes. As we next step up to 400G SerDes in 2028, our XPU customers will likely continue to stay on direct attached copper. And this is a huge advantage as the alternative of going to optical is more expensive and requires significantly more power, reflecting the foregoing factors. Our visibility in 2027 has dramatically improved. Today, in fact, we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027. We have also secured the supply chain required to achieve this. Now turning to non-AI semiconductors. Q1 revenue of $4.1 billion was flat year-on-year, in line with guidance. Enterprise networking, broadband, server storage revenues were up year-on-year, offset by a seasonal decline in wireless. In Q2, we forecast non-AI semiconductor revenue to be approximately $4.1 billion, up 4% from a year ago. Let me now talk about our Infrastructure Software segment. Q1 Infrastructure Software revenue of $6.8 billion was in line with our guidance, up 1% year-on-year. For Q2, we forecast Infrastructure Software revenue to be approximately $7.2 billion, up 9% year-on-year. VMware revenue grew 13% year-on-year. Bookings continue to be strong and total contract value booked in Q1 exceeded $9.2 billion,”