From 24/7 Wall St. · Alex Sirois · · 1m 30s
Broadcom Boosts AI Revenue with Aggressive Projections
Broadcom's AI semiconductor revenue jumps 221% YoY as CEO targets $115B fiscal 2027 revenue.
In brief
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 $16.7 billion in Q3 FY2026, with CEO Hock Tan projecting $115 billion in fiscal 2027 revenue. Originally reported by 24/7 Wall St..
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"”
What to remember
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.
