Broadcom continues to see significant financial growth as a primary supplier of custom AI accelerators for major technology companies including Alphabet, Meta, OpenAI, and Anthropic.

Key Points

• Broadcom reported fiscal Q3 2026 revenue of $29.59 billion, representing an 85.5% year-over-year increase.
• AI semiconductor revenue reached $16.70 billion in Q3, with projections for Q4 reaching approximately $21.7 billion.
• The company maintains long-term custom silicon contracts with major hyperscalers, including multi-gigawatt commitments for Anthropic and OpenAI through 2028.
• Broadcom achieved $13.67 billion in free cash flow during Q3, supporting a dividend that has increased for fifteen consecutive years.
• Management projects AI-related revenue to reach $230 billion by fiscal 2028, with earnings per share expected to exceed $30.

Why it Matters

Broadcom’s strategy of providing custom silicon allows major AI labs to optimize workloads more efficiently and affordably than using standard GPUs. This positioning creates a recurring revenue model that makes the company a critical infrastructure provider for the ongoing expansion of global artificial intelligence capabilities.