U.S. drops AI chip export limits, clearing Broadcom's global expansion path
The U.S. government has scrapped a proposed rule that would have restricted global exports of advanced AI chips. Broadcom, a key player in AI infrastructure, now faces fewer barriers in selling its high-performance networking and custom chips worldwide.
The abandoned framework had threatened to slow down the company’s expansion, particularly for products like its newly released Tomahawk 6 switch, which offers record-breaking data speeds. Under the withdrawn proposal, companies planning large-scale data centres with over 200,000 processors would have had to invest in U.S. infrastructure as a condition for purchases. Exporting advanced accelerators to most international markets would also have required strict case-by-case approvals.
The decision removes a major bureaucratic obstacle for Broadcom’s global distribution. Only China remains subject to existing export restrictions. This change comes as the company ramps up mass shipments of its Tomahawk 6 switch, a high-capacity networking device capable of handling 102.4 terabits per second.
Broadcom’s financial outlook remains strong. The company reported $19.31 billion in revenue for its most recent quarter, a 29.5% increase from the same period last year. Executives have forecast that segment-specific revenue will surpass $100 billion by the end of fiscal 2027—more than 1.5 times its total revenue in 2025.
The firm’s role in AI infrastructure continues to grow. As the primary development partner for Alphabet’s Tensor Processing Units, Broadcom has secured a central position in the sector. Meanwhile, insider activity shows mixed signals: executives sold $155.5 million worth of shares over the past 90 days, while institutional investors like CalPERS increased their stakes by 3.8% to roughly 11.6 million shares. Ameriprise Financial, however, reduced its holdings by 6.6%. With the export restrictions lifted, Broadcom can now accelerate the global rollout of its AI and networking technologies. The company’s revenue projections and ongoing shipments of high-performance hardware suggest continued growth in the sector. The withdrawal of the proposal also simplifies operations for other firms developing large-scale AI infrastructure.
