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Broadcom Heads Into Earnings With AI Deals Lifting Expectations, Microsoft Chip Talks Reported

Investor expectations run high ahead of Q4 on hyperscaler AI chip partnerships.

Overview

  • Broadcom reports fiscal Q4 results after the close, with LSEG consensus at $17.49 billion in revenue and $1.86 in adjusted EPS.
  • AI momentum includes Google’s TPU program used to train Gemini 3, OpenAI planning to deploy Broadcom‑developed custom chips next year, and a $10 billion AI order disclosed from a new customer in September.
  • Reports from The Information say Broadcom and Microsoft are in talks to co‑design custom AI chips, signaling a potential new hyperscaler partnership that has not been confirmed by the companies.
  • Wall Street has boosted targets on anticipated TPU/XPU and networking strength, and options pricing points to roughly a 7% move after the print as investors focus on FY26 AI revenue outlook and margins.
  • Shares trade near record highs after a large 2025 rally, with coverage noting elevated valuation and revenue concentration among a few hyperscale customers as key risks.