Broadcom’s shares rose in extended trading Wednesday following the chipmaker’s announcement of a positive fiscal year outlook and expansion of its artificial intelligence chip business. The company reported fiscal fourth-quarter revenue of $15.95 billion, representing an 86% increase from the prior year, while net income more than tripled to $13.09 billion, or $2.68 per share, compared with $4.14 billion, or 85 cents per share, a year earlier.
For the upcoming fiscal fourth quarter, Broadcom projected revenue of $34.8 billion, slightly below the $35.03 billion consensus estimate among analysts. The company’s semiconductor revenue segment more than tripled to $16.7 billion during the period, exceeding the $15.2 billion average estimate. Infrastructure software revenue reached $8.75 billion, falling slightly short of the $8.82 billion consensus.
During the quarter, Broadcom highlighted its partnerships with major artificial intelligence companies, including the custom Jalapeno chip developed with OpenAI and production shipments of custom accelerators for Meta. CEO Hock Tan outlined plans for significant processor deliveries to Google, with tens of billions of dollars expected annually over several years. The company expects 5 gigawatts of TPU 8i chip deployment by Anthropic in 2027, along with 1.3 gigawatts of Jalapeno deployment for OpenAI the same year.
Broadcom provided ambitious projections for its artificial intelligence revenue, targeting $115 billion in fiscal 2027, double the current level, with plans to reach $230 billion in fiscal 2028. The company expects to achieve over $30 in earnings per share, significantly exceeding the $25.86 LSEG consensus estimate for fiscal 2028 adjusted earnings. Finance Chief Amie Thuener indicated that Broadcom may provide residual value guarantees as contingent liabilities to support its strategic customers’ significant infrastructure investments.
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