Broadcom Beats Estimates as Strong AI Chip Demand Drives Record Revenue
Broadcom is a major global supplier of networking chips and custom ASICs and has expanded its operations through its VMware software business. Increased spending on AI data centers by large cloud providers has made demand for its chips a key gauge of global AI infrastructure investment and business conditions across Taiwan’s semiconductor assembly and testing supply chain.
Broadcom reported results for the first quarter of fiscal 2026 in March 2026. Revenue rose 29% from a year earlier to a quarterly record of $19.31 billion, beating market expectations, while AI chip sales doubled year over year on strong demand for custom ASICs. Chief Executive Hock Tan said AI revenue continued to accelerate, and the shares rose in after-hours trading following the results.
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The history behind this eventBroadcom Maintains $100 Billion Annual AI Chip Revenue Forecast as Weak Outlook Hammers Shares
Broadcom is a major supplier of custom ASICs and data-center networking chips, with AI leaders including Anthropic and OpenAI among its key customers. As large cloud providers expand computing capacity, investors are closely watching whether Broadcom can deliver more than $100 billion in annual AI chip revenue. Its performance is also a test of the growth momentum and competitive edge of custom silicon.
Broadcom reported fiscal second-quarter results in June 2026, with AI revenue doubling from a year earlier to $10.8 billion. But the company did not raise its AI chip sales forecast, and its subsequent guidance fell short of some Wall Street expectations, sending its shares down about 13% at one point in after-hours trading. Chief Executive Hock Tan maintained his long-term forecast of $100 billion in annual AI chip revenue.
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