Broadcom CEO Pay Depends on AI Revenue Targets, Company Says. The Stock Jumps.

The company is targeting $90 billion in AI revenue by 2030. (David Paul Morris/Bloomberg)

Broadcom CEO Hock E. Tan’s stock-based compensation is directly tied to the company’s artificial intelligence revenue, according to a Securities and Exchange Commission filing made Tuesday evening.

Broadcom stock was soaring 10% Wednesday after the disclosure, as investors appeared pleased by the company’s aggressive AI growth targets.

Tan received a performance stock unit award, or PSU, of 610,251 shares of common stock as part of a recent contract extension. The award will fully vest if Broadcom reaches $90 billion in revenue from its AI products over any consecutive four-quarter period from fiscal 2028 through fiscal 2030, the filing said.

That award will double if Broadcom earns $105 billion in AI revenue and triple if revenue totals more than $120 billion. Should Broadcom fail to hit $60 billion in AI revenue during the period, Tan would forfeit the entire award. Payouts vary incrementally between those levels. As of Tuesday’s close, the shares would be valued around $205.5 million.

Among other solutions, Broadcom makes semiconductors, application-specific integrated circuits, or ASICs, and extended processing units, or XPUs. For Tan’s purposes, AI revenue includes but is not limited to those products.

The company posted AI revenue of $5.2 billion for its fiscal third quarter, meaning it sees robust growth in demand for AI products over the next half decade. Tan alluded to this bullish outlook at a Goldman Sachs investor conference Tuesday.

“Today, 2025, our AI revenue is $20 billion,” Tan said. “That gives you a sense of our belief how strong the demand for compute is in this race towards AI and generative AI and superintelligence.”

Write to Nate Wolf at nate.wolf@barrons.com