Broadcom reported strong quarterly results and provided an upbeat outlook for the next fiscal year, with the chipmaker’s stock moving higher in after-hours trading on Wednesday. The company signaled accelerating business momentum with major AI companies, citing custom chip development and deployment plans across multiple technology firms.
For the fiscal fourth quarter, Broadcom reported revenue increased 86% to $15.95 billion compared with the prior year. Net income more than tripled to $13.09 billion, or $2.68 per share, versus $4.14 billion, or 85 cents per share, in the year-ago period. The company guided for $34.8 billion in fiscal Q4 revenue, slightly below analyst consensus expectations of $35.03 billion.
Chief Executive Officer Hock Tan outlined ambitious growth plans centered on artificial intelligence chip manufacturing. For fiscal 2027, the company expects to double AI revenue to $115 billion and plans to double that figure again to $230 billion in fiscal 2028. Tan projected earnings per share exceeding $30, surpassing LSEG consensus forecasts of $25.86 for fiscal 2028. The company expects to deliver tens of billions of dollars of processors annually to Google over several years and is targeting a 5-gigawatt deployment of custom chips for Anthropic in 2027.
Broadcom has been a major beneficiary of the artificial intelligence boom, designing specialized chips for companies including Google, Meta, and OpenAI. Semiconductor revenue more than tripled to $16.7 billion, exceeding analyst estimates. Finance Chief Amie Thuener noted the company may provide residual value guarantees to support AI laboratories’ significant upfront infrastructure investments. While Broadcom shares have gained approximately 6% during the year to date, the stock has trailed the S&P 500 index, which was up 12% over the same timeframe.
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