Broadcom's Artificial Intelligence Chip Revenue Surges by 221 Percent
Broadcom increased its AI-focused semiconductor revenue by 221% to $16.7 billion in the fiscal third quarter ending August 2, 2026.
Broadcom increased its total revenue by 86% and earnings per share by 96% in the third quarter of fiscal year 2026, driven by intense demand for AI chips. Fueled by tech giants such as Alphabet, Meta, OpenAI, and Anthropic, the company generated $16.7 billion in AI-related revenue during the quarter.
Major Surge in AI Chips
Broadcom's custom chip design unit, which sits at the center of the company's growth strategy, delivered a massive 221% increase in AI semiconductor revenue. This success is directly linked to the growing chip requirements of industry leaders such as Alphabet, Meta Platforms, OpenAI, and Anthropic.
Financial Performance and Future Outlook
The company increased its total revenue by 86% and diluted earnings per share by 96% in the fiscal third quarter ending August 2, 2026. While management projects revenue of $34.8 billion for the fourth quarter, market analysts estimate this figure to be around $35 billion.
Despite strong financial results, Broadcom shares faced selling pressure in the markets following the data release. The company, which currently has a market capitalization of $1.7 trillion, is trading at approximately 19 times its expected earnings for the coming year.