Broadcom’s shares moved higher in after-hours trading following the release of quarterly results and forward guidance that signaled robust demand from major artificial intelligence customers.
The chipmaker reported fiscal fourth-quarter revenue of $15.95 billion, representing an 86% increase compared to the prior year. Net income surged to $13.09 billion, or $2.68 per share, more than tripling from $4.14 billion, or 85 cents per share, in the year-earlier period. The company projected fiscal fourth-quarter revenue of $34.8 billion, slightly below the $35.03 billion consensus expectation among analysts tracked by LSEG.
Chief Executive Officer Hock Tan outlined ambitious plans for AI-related revenue growth, projecting the company would double AI revenue to $115 billion in fiscal 2027, followed by a further doubling to $230 billion in fiscal 2028. The executive indicated the company is positioned to generate over $30 in earnings per share, exceeding the $25.86 consensus estimate for fiscal 2028 adjusted earnings per share among analysts surveyed by LSEG. Tan detailed multiple deployment initiatives, including expectations for 5 gigawatts of TPU 8i chips from Anthropic in 2027 and a 1.3 gigawatt deployment of custom Jalapeno processors for OpenAI during the same period, with additional growth anticipated beyond those figures.
Semiconductor segment revenue reached $16.7 billion, surpassing the $15.2 billion average estimate, while infrastructure software generated $8.75 billion, marginally below the $8.82 billion consensus projection. Finance Chief Amie Thuener noted that Broadcom may provide residual value guarantees serving as contingent liabilities to support major artificial intelligence customers’ significant upfront infrastructure investments. Broadcom shares had gained approximately 6% during 2026 through the date of the announcement, trailing the broader S&P 500 index’s 12% advance during the same period.
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