Broadcom delivers strong earnings view as CEO touts growth with AI labs — SkimNews
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- Broadcom reported adjusted earnings of $3.32 per share on $29.59 billion in revenue, exceeding LSEG estimates of $3.24 and $29.36 billion.
- Broadcom forecast fiscal fourth-quarter revenue of $34.8 billion, below the $35.03 billion analysts expected.
- Broadcom posted 86% revenue growth, with revenue rising from $15.95 billion a year earlier, while net income more than tripled to $13.09 billion, or $2.68 per share.
- Broadcom's semiconductor revenue more than tripled to $16.7 billion, beating the $15.2 billion estimate, but infrastructure software revenue of $8.75 billion missed the $8.82 billion consensus.
- Hock Tan said Broadcom expects to accelerate Google Ironwood TPU shipments to Anthropic and TPU 8i shipments to Google, while delivering tens of billions of dollars of processors to Google annually for several years.
- OpenAI is preparing to tape out its second-generation chip and planning a third version with Broadcom, while Meta expects production shipments of its MTIA accelerator; Broadcom targets $115 billion in AI revenue in fiscal 2027 and another doubling to $230 billion in fiscal 2028.
- Amie Thuener said Broadcom might provide residual-value guarantees to the AI labs, which she described as contingent liabilities.
Why it matters: Broadcom’s bullish $115 billion fiscal 2027 AI-revenue target accompanies planned chip deployments for major labs, but its $34.8 billion fourth-quarter forecast missed consensus. Possible residual-value guarantees create contingent-liability exposure, while Broadcom shares had lagged the S&P 500 in 2026, rising about 6% versus 12%.
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