Broadcom delivered results for its most recent quarter with mixed performance relative to analyst expectations. The chipmaker reported revenue growth of 86% compared to the prior-year period, rising to $15.95 billion from a year-ago figure of $15.95 billion. Net income more than tripled to $13.09 billion, or $2.68 per share, up from $4.14 billion, or 85 cents per share, in the comparable prior-year quarter.
For the upcoming fiscal fourth quarter, Broadcom guided to revenue of $34.8 billion, slightly below the $35.03 billion consensus estimate among analysts tracked by LSEG. The company’s semiconductor division generated $16.7 billion in revenue, surpassing the $15.2 billion average estimate, while infrastructure software revenue reached $8.75 billion, falling short of the $8.82 billion consensus projection.
The company has emerged as a major beneficiary of the artificial intelligence investment cycle, designing custom processors for technology firms including Google, Meta, and OpenAI. Chief Executive Officer Hock Tan outlined an ambitious growth trajectory for AI-related revenue, projecting the segment will double to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028. The company anticipates delivering earnings per share exceeding $30, well above the $25.86 consensus for fiscal 2028 adjusted earnings per share.
Tan detailed multiple chip deployment plans with leading AI developers. The company expects to accelerate shipments of Google Ironwood and TPU 8i processors to Anthropic, with projections for a 5-gigawatt deployment in 2027 and additional capacity of 10 gigawatts. Broadcom also anticipates continued shipments of its Jalapeno chip for OpenAI and production shipments of Meta’s custom MTIA accelerator. Finance Chief Amie Thuener noted the company may provide residual value guarantees to support the AI labs’ significant upfront capital requirements. Broadcom shares rose modestly in extended trading following the earnings announcement.
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