Broadcom Q3 Profit Triples to $13.09B; AI Chip Revenue Seen Doubling to $115B by 2027
AVGO sits 26% above its 52-week low of $289.96.
Summary
Broadcom's Q3 profit more than tripled to $13.09 billion, or $2.68 a share, from $4.14 billion a year earlier, while revenue nearly doubled to $29.59 billion, beating analyst expectations. Adjusted EPS of $3.32 also topped the $3.22 consensus. The custom AI chip business drove the surge, representing 73% of $16.7 billion in AI semiconductor revenue, with Q4 AI revenue expected to reach $21.7 billion. CEO Hock Tan said demand from AI labs like OpenAI, Anthropic, and Google is accelerating, and the company has secured supply to support AI semiconductor revenue doubling to $115 billion in fiscal 2027, with line of sight to $230 billion in 2028. Broadcom has begun shipping the latest Google TPUs and OpenAI Jalapeño chips, and Meta Platforms custom chips will start shipping this quarter. This follows the earlier Q4 guidance of $34.8 billion, which already exceeded consensus, but the detailed AI revenue trajectory and new customer chip shipments are incremental positives. Shares were roughly flat after-hours after initially falling on the report.
At the time of this announcement, AVGO was trading at $366.64 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $289.96 to $495.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.