# Broadcom Boosts AI Revenue with Aggressive Projections

> Broadcom's AI semiconductor revenue jumps 221% YoY as CEO targets $115B fiscal 2027 revenue.
- Title: Broadcom Boosts AI Revenue with Aggressive Projections
- Summary: Broadcom's AI semiconductor revenue jumps 221% YoY as CEO targets $115B fiscal 2027 revenue. Broadcom's AI semiconductor revenue grew 221% year over year to…
- Keywords: broadcom, ai semiconductors, vmware private ai cloud, hock tan, fiscal 2027, ai revenue, xpu customers, anthropic, openai, google, meta, vmware
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/09/23/broadcom-just-made-a-move-that-further-solidifies-my-decision-to-buy-on-repeat
- Author: Alex Sirois
- Published: 2026-09-23T15:45:48+00:00
- Read time: 1 min
- Topics: broadcom, ai semiconductors, vmware private ai cloud, hock tan, fiscal 2027, ai revenue, xpu customers, anthropic, openai, google, meta, vmware
## Broadcom Earnings Boost AI Revenue
Broadcom's Q3 FY2026 AI semiconductor revenue reached $16.7 billion, up 221% year over year and 54% quarter over quarter.

> Broadcom sells the picks and shovels of frontier AI: custom XPUs for the six labs that train the largest models, plus the networking silicon that stitches those chips into gigawatt-scale clusters
## CEO Targets $115B Fiscal 2027 Revenue
CEO Hock Tan stated Broadcom has secured supply to gain double AI revenue to roughly $115 billion in fiscal 2027, with line of sight to $230 billion in fiscal 2028.

> CEO Hock Tan said Broadcom has "secured the supply to gain double AI revenue" to roughly $115 billion in fiscal 2027, with line of sight to another doubling to $230 billion in fiscal 2028
## AI Semiconductor Revenue Growth
Broadcom's AI semiconductor revenue grew 221% year over year to $16.7 billion in Q3 FY2026, with guidance for $21.7 billion in Q4.

> Guidance calls for $21.7 billion in Q4, up 236% year over year
## Strong Financial Metrics
Q3 free cash flow hit $13.67 billion, or 46% of revenue, with cash on balance sheet climbing to $23.98 billion.

> Q3 free cash flow hit $13.67 billion, or 46% of revenue, and cash on the balance sheet climbed to $23.98 billion, up 123.69% year over year
## Dividend and Debt Reduction
Broadcom raised dividend 10% in December 2025 to $0.65 per share quarterly, while paying down $5.6 billion of long-term debt.

> Broadcom raised the dividend 10% in December 2025, the 15th consecutive annual increase since fiscal 2011, to $0.65 per share quarterly
## AI Shipment Targets
Broadcom expects to ship $350 billion of AI semiconductors to customers in the next two years, with Anthropic as largest XPU customer by 2027.

> Tan said Broadcom expects to ship "$350 billion of AI semiconductors to these customers in the next two years"
## Custom Silicon Advantage
OpenAI's Jalapeno accelerator outperforms Grace Blackwell GPU for inference workloads at half the cost.

> OpenAI's Jalapeno accelerator "outperforms Grace Blackwell GPU for inference workloads" at "half the cost of a GPU"
## Risk Mitigation Strategy
Broadcom uses AI XPV financing platform with Apollo and Blackstone to mitigate customer concentration risks.

> Customer concentration is real. Broadcom has six XPU customers, and a slip at Anthropic, OpenAI, Google, or Meta would pressure revenue. Tan flagged it: "Land power and shell… is a big concern"
## Key takeaway

Broadcom's AI semiconductor revenue grew 221% year over year to $16.7 billion in Q3 FY2026, with CEO Hock Tan projecting $115 billion in fiscal 2027 revenue.