Broadcom Q3 Earnings: AI Chip Sales Tripled and Guidance Misses Slight Expectations
Broadcom Inc. (NASDAQ: AVGO) reported strong third-quarter results for fiscal year 2026, with revenue reaching $29.59 billion — a significant increase from $15.95 billion in the same period last year. Adjusted earnings per share rose to $3.32 compared to $1.69 previously. The company's AI chip sales surged by over 200% annually, hitting $16.7 billion and expected to grow further into Q4. Despite these impressive figures, Broadcom’s forward guidance for the fourth quarter came in slightly below expectations at $34.8 billion versus an anticipated $35.03 billion. While this discrepancy is relatively minor given the scale of operations, it has raised concerns among investors who are highly sensitive to any signs that growth might be slowing down. The company's robust performance was driven by its AI business and infrastructure software revenue which grew 29%. However, maintaining current high-growth rates poses challenges as demand dynamics evolve. Investors remain cautious about potential shifts in customer dependency patterns.
Tickers: $AVGO
Topics: ai_chips free_cash_flow revenue_growth semiconductors