Broadcom Reports 221% Year-Over-Year Growth in AI Chip Revenue
In its fiscal third-quarter earnings release, Broadcom reported a significant surge in artificial intelligence (AI) semiconductor revenue, growing by 221% year over year to $16.7 billion. CEO Hock Tan highlighted strong demand for custom AI accelerators and networking solutions, with expectations of continued momentum into Q4, where the company forecasts AI chip revenue will reach $21.7 billion—a 236% increase from a year ago. Despite this impressive growth, Broadcom's stock has shown only modest returns; a $1,000 investment on Sept. 8, 2025 would be worth approximately $1,070 as of the same date in 2026. The muted market reaction may stem from slightly below-expectation revenue guidance and pressure on gross margins due to higher memory prices. Looking ahead, Broadcom anticipates AI chip revenue will reach $230 billion by fiscal 2028—up from a trailing-12-month total of $89 billion. The company is also expanding its partnerships with major tech firms like Google and OpenAI for custom chips.
Topics: AI chips earnings report revenue growth stock performance