Broadcom Revenue Jumps 86% to $29.6 Billion as AI Chip Growth Accelerates
Key Facts
Broadcom reported revenue of $29.6 billion in the third quarter of its fiscal 2026, up 86% year over year, in a performance reflecting strong demand for the company’s artificial intelligence-related solutions. AI semiconductor revenue reached $16.7 billion, up 221% from the same period a year earlier and 54% from the previous quarter, according to an investor relations statement. But available EL7 data showed the stock closed at $345 on October 29, after closing at $351.81 on October 28. Open sources do not provide verified figures for its price or percentage change during the October 30 session. The stock’s performance comes as sector shares fell after Intel’s results and guidance, while investors assess whether spending on AI infrastructure can continue to support growth.
Broadcom’s growth extended to its other core businesses, with semiconductor solutions revenue reaching $20.839 billion in the third quarter, up 127% year over year. Infrastructure software revenue was $8.752 billion, up 29% from the year-earlier period. The figures show that the company’s growth was not limited to its AI chip category, although that category recorded the fastest increase among the figures the company reported. Free cash flow also reached $13.7 billion, equivalent to 46% of revenue, according to the company statement. The measure indicates the cash generated by operations during the quarter, alongside revenue figures that reflect the expansion of the business.
The strong performance came as the chip sector faced broad volatility after significant gains during the year. A Reuters report published on October 29 said the semiconductor index had risen more than 60% during 2026 through that date, but had fallen 13% from its recent October peak and 21% from its record high set in June. That trajectory puts the index’s latest decline in the context of a correction after a notable rally, rather than an erasure of the year’s gains. In after-hours trading on Thursday, chip stocks fell after Intel’s results and guidance, and the report quoted Michael James, an equity trader at Rosenblatt Securities, as saying that "the general weakness in semiconductors after the close is primarily due to Intel’s guidance and the shift in negative sentiment." Reuters also reported that tighter financing conditions during the month had left some expected initial public offerings on hold and pressured highly leveraged AI infrastructure companies.
DA Davidson’s view ties part of the expected support for the stock to the trajectory of major AI companies. Analyst Gil Luria said his reading of Anthropic’s filing led him to believe the IPO would proceed and the company would raise capital. DA Davidson sees doubts growing in recent weeks about Broadcom’s growth relying on Anthropic and OpenAI, which are expected to become its largest custom-chip customers. By contrast, the firm believes the possibility of deals involving those two companies could support Broadcom’s outlook. That view remains tied to financing and IPO developments, as a Reuters report said tighter financing conditions had pressured some AI infrastructure companies.
Broadcom expects revenue of about $34.8 billion in the fourth quarter of fiscal 2026, up 93% from the year-earlier period. The company estimated AI semiconductor revenue at $21.7 billion, an annual increase of 236%, and said it expects the business to accelerate. The fourth quarter ends on November 1, 2026, according to an investor relations statement. The coming outlook places the third quarter’s actual growth figures alongside the company’s estimates for the next period, with sector stocks still affected by Intel’s guidance and tighter financing conditions. Markets are watching whether the expected acceleration in revenue will continue to support the company’s growth story amid pressure on the sector.