Broadcom posted fiscal third-quarter results that topped Wall Street estimates and issued long-range earnings guidance that far exceeded analyst expectations, with CEO Hock Tan projecting the company's AI revenue will double to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028.
The company reported adjusted earnings per share of $3.32 against an LSEG consensus estimate of $3.24, and revenue of $29.59 billion against an expected $29.36 billion.
Revenue rose 86% during the quarter from $15.95 billion a year ago. Net income more than tripled to $13.09 billion, or $2.68 per share, compared with $4.14 billion, or 85 cents per share, in the same period a year earlier.
Semiconductor revenue more than tripled to $16.7 billion, surpassing the $15.2 billion average estimate tracked by StreetAccount. Infrastructure software revenue came in at $8.75 billion, falling short of the $8.82 billion consensus.
For the fiscal fourth quarter, Broadcom guided for revenue of $34.8 billion, below the $35.03 billion analysts had anticipated — a near-term miss that was overshadowed by the longer-range outlook. Tan said the company is on target to produce over $30 in earnings per share for fiscal 2027, well ahead of the LSEG consensus of $25.86 for fiscal 2028 adjusted earnings per share.
The results underscore Broadcom's deepening ties with the leading artificial intelligence laboratories. Tan said on a conference call that the company expects to accelerate shipments of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google, with deliveries of tens of billions of dollars of processors to Google each year for the next several years.
Broadcom is projecting a 1.3 gigawatt deployment of its custom Jalapeno chip — developed with OpenAI — in 2027, with a line of sight of over 5 gigawatts for Jalapeno and its second-generation successor. Tan also said OpenAI is preparing to tape out that second-generation chip and is already making plans with Broadcom for a third version.
Anthropic, meanwhile, is expected to deploy 5 gigawatts of TPU 8i chips in 2027, with Broadcom reporting line of sight to deliver another 10 gigawatts.
"Shipments of Jalapeno for OpenAI will continue, and for Meta, we expect production shipments of their custom MTIA accelerator optimized for inference and recommendation at scale," Tan said.
The company's finance chief, Amie Thuener, said Broadcom may provide residual value guarantees that are contingent liabilities to the AI labs. "We are empowering two of our most strategic customers, the leading AI labs, to bridge the gap between their current cash flow and the significant upfront investments required for their businesses," Thuener said.
Apple also said during the quarter that it would increase its spending with Broadcom for U.S. chip production.
Broadcom's stock has climbed more than sixfold since the end of 2022, pushing its market capitalization to roughly $1.8 trillion. Even so, shares gained only about 6% in 2026 through Wednesday's close, lagging the S&P 500's 12% advance over the same period.
The scale of the fiscal 2027 and 2028 projections signals that custom silicon — chips designed specifically for individual hyperscalers and AI labs rather than sold as general-purpose hardware — is becoming an increasingly central part of Broadcom's business model, a dynamic that analysts will likely scrutinize closely as the company's contingent financial arrangements with its largest customers grow more complex.
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