Broadcom Reports Record Revenue Driven by AI Chip Demand
· Business · Economic Times, Reuters
Broadcom reported a fiscal third-quarter revenue of $29.6 billion, an 86% increase year-on-year, fueled by high demand for custom AI accelerators and networking chips. Revenue from AI semiconductors reached $16.7 billion, a 221% rise compared to the same period last year. The company projects this segment will grow to $21.7 billion in the fourth quarter and estimates total AI semiconductor revenue could reach $115 billion by fiscal 2027. Despite these gains, company shares faced pressure as the $34.8 billion revenue forecast for the fourth quarter met with mixed reactions from analysts. Broadcom currently supplies custom chips to major developers including OpenAI, Anthropic, and Google, with Meta expected to join the client list soon.
Why it matters
The performance of Broadcom serves as a key indicator for the health of the global AI infrastructure sector, impacting technology companies that rely on its custom hardware for large-scale deployments.
Read the original report — Economic Times
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