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Key figures from Broadcom's earnings report

Broadcom edged higher in after-hours trading on Wednesday after reporting results. The company guided fiscal fourth-quarter revenue to $34.8 billion, citing demand from AI-focused customers; that was slightly below the $35.03 billion analyst estimate compiled by LSEG.

Quarterly revenue jumped 86% from a year earlier. Net income rose from $4.14 billion to $13.09 billion, while earnings per share increased from 85 cents to $2.68.

Market reaction and stock performance

Broadcom is seen as one of the biggest winners of the generative AI boom. The stock has surged more than sixfold since the end of 2022, lifting the company's market value to around $1.8 trillion. Even so, gains in the shares since the start of 2026 through Wednesday's close have been limited to about 6%, compared with a 12% rise in the S&P 500 over the same period.

AI labs are driving orders higher

New shipments planned for Google, OpenAI and Meta

Management said custom AI processors remain at the center of the company's growth story. Broadcom said it expects a faster shipment pace for chips it is developing for customers including Google, Meta and OpenAI, while Apple was also reported to be increasing its spending with Broadcom for chip production in the U.S.

  • Shipments of Google's Ironwood tensor processors to Anthropic are expected to accelerate.
  • Deliveries of the Jalapeno chip developed for OpenAI are continuing, while a second-generation design is being prepared and planning is underway for a third version.
  • At Meta, production shipments are expected for the custom MTIA accelerator, which is optimized for inference and recommendation systems.

Capacity and revenue targets for 2027 and 2028

The company expects to deliver tens of billions of dollars' worth of processors to Google each year over the next several years. Management said Anthropic could deploy 5 gigawatts of TPU 8i capacity in 2027, with visibility on an additional 10 gigawatts. For OpenAI, Broadcom sees 1.3 gigawatts of Jalapeno deployment in 2027 and potential capacity of more than 5 gigawatts across Jalapeno and the second generation.

Segment revenue and financial outlook

On a segment basis, semiconductor revenue reached $16.7 billion, beating StreetAccount's average estimate of $15.2 billion. Infrastructure software revenue came in at $8.75 billion, just below the $8.82 billion forecast.

CEO Hock Tan said Broadcom expects AI revenue to rise to $115 billion in fiscal 2027 and then double to $230 billion in 2028. The company also said earnings per share are on track to rise above $30, while LSEG's adjusted earnings-per-share estimate for 2028 stands at $25.86. Chief financial officer Amie Thuener said Broadcom may provide residual value guarantees to support investments tied to two strategic customers, which could create contingent liabilities.

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