Broadcom’s AI Chip Revenue Skyrockets 221% to $16.7B in Record-Breaking Quarter
Semiconductor titan Broadcom shattered records with its fiscal third quarter earnings report for 2026. The company boasted a total revenue of $29.6 billion, marking an 86% increase from the same period the previous year. The most impressive figure, however, was the AI chip revenue, which saw an extraordinary 221% year-over-year growth to $16.7 billion. This now constitutes 56% of the company’s total revenue.
Broadcom’s AI business revolves around custom AI accelerator chips (XPUs). These chips are tailored for individual hyperscale customers and are combined with high-speed AI networking silicon. CEO Hock Tan announced that the company now caters to six core custom chip customers, including tech giants like Google, Meta, Anthropic, and OpenAI.
Looking forward, Broadcom projects Q4 2026 AI semiconductor revenue to reach $21.7 billion, a 236% year-over-year increase. The company also forecasts a full-year fiscal 2026 AI revenue of approximately $58 billion. In an ambitious move, the management has charted a path to $115 billion in AI revenue for fiscal 2027 and a whopping $230 billion by fiscal 2028. This suggests a business trajectory set to quadruple in just two years.
Despite these remarkable results, Broadcom shares dipped over 3% in after-hours trading. This was due to the Q4 total revenue guidance of $34.8 billion falling slightly short of analyst expectations, which stood at $35.03 billion. However, analysts widely regard the underlying AI growth trajectory as one of the most potent in today’s semiconductor industry.
Source: Technology.org | Yahoo Finance