Broadcom’s stock moved higher in extended trading following the release of its quarterly results and forward guidance. The chipmaker reported revenue growth of 86% during the quarter, reaching $15.95 billion compared with the prior-year period, while net income more than tripled to $13.09 billion, or $2.68 per share, up from $4.14 billion or 85 cents per share a year earlier. The company’s fiscal fourth-quarter revenue forecast of $34.8 billion came in slightly below analyst expectations of $35.03 billion, according to LSEG data.
Broadcom has emerged as one of the major beneficiaries of the artificial intelligence sector’s expansion, designing custom chips for major technology companies including Google, Meta, and OpenAI. The company’s stock has appreciated significantly since the end of 2022, reaching a market capitalization of approximately $1.8 trillion. However, shares have underperformed broader market indices in 2026, gaining about 6% year-to-date compared with the S&P 500’s 12% advance.
During the quarter, Broadcom highlighted collaborations with key customers, including the Jalapeno chip developed with OpenAI and expanded chip production for Apple’s domestic manufacturing efforts. CEO Hock Tan disclosed plans to accelerate shipments of Google Ironwood and TPU 8i chips to Anthropic and Google, with the company expecting to deliver tens of billions of dollars in annual processor orders over the next several years.
Looking ahead, Broadcom projects significant expansion in its artificial intelligence business. Tan outlined expectations to double AI revenue to $115 billion in fiscal 2027, with plans to double again to $230 billion in fiscal 2028, and target earnings per share above $30. This projection significantly exceeds LSEG consensus estimates of $25.86 for adjusted earnings per share in fiscal 2028. The company anticipates substantial deployments across multiple customers, including 5 gigawatts of TPU 8i chips for Anthropic in 2027 and 1.3 gigawatts of Jalapeno chips. Finance Chief Amie Thuener noted that Broadcom may provide residual value guarantees as contingent liabilities to support customer deployments, which the company views as economically justified investments.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI