Broadcom is positioning itself for another powerful phase of growth, buoyed by surging demand for artificial intelligence infrastructure and expanding partnerships with leading AI laboratories. Shares of the chipmaker edged higher in extended trading after the company delivered better-than-expected quarterly results and outlined an ambitious outlook.
Strong Quarterly Performance
Broadcom reported adjusted earnings of $3.32 per share, ahead of the $3.24 expected by analysts, while revenue reached $29.59 billion, compared with the $29.36 billion consensus estimate.
For the fiscal fourth quarter, the company forecast revenue of $34.8 billion, slightly below analysts’ $35.03 billion expectation.
The results nevertheless underline the extraordinary pace of Broadcom’s expansion. Quarterly revenue jumped 86% year-on-year to $29.59 billion, while net income more than tripled to $13.09 billion, from $4.14 billion a year earlier.
AI Emerges as the Growth Engine
Broadcom has become one of the major beneficiaries of the AI boom, developing custom processors for technology giants and AI companies including Google, Meta and OpenAI. Its shares have risen more than sixfold since the end of 2022, taking its market value to roughly $1.8 trillion.
CEO Hock Tan highlighted accelerating demand from AI laboratories, particularly for Broadcom’s custom-designed chips. The company expects to increase shipments of Google’s Ironwood tensor processing units to Anthropic and TPU 8i processors to Google, with Tan saying Broadcom could supply Google with tens of billions of dollars of processors annually for years.
Broadcom also expects continued shipments of its Jalapeno processor to OpenAI, while Meta is preparing production shipments of its custom MTIA accelerator for large-scale inference and recommendation workloads.
Ambitious Roadmap
Tan outlined an aggressive AI revenue target of $115 billion in fiscal 2027, effectively doubling current levels, followed by another doubling to $230 billion in fiscal 2028. He also expects earnings per share to exceed $30.
Broadcom’s semiconductor revenue more than tripled to $16.7 billion, surpassing estimates, while infrastructure software revenue reached $8.75 billion, slightly below expectations.
With AI labs increasingly investing in custom computing infrastructure, Broadcom is betting that its role as a strategic chip partner will extend well beyond the current AI boom—and become a defining pillar of its long-term growth.
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