Overview
- Broadcom reported a powerful fiscal third quarter with roughly $29.6 billion in revenue and about $16.7 billion in AI semiconductor sales, a surge that management says reflects deep hyperscaler demand.
- The company raised its multi‑year AI revenue outlook to about $115 billion for fiscal 2027 and about $230 billion for fiscal 2028 and disclosed $179.2 billion in remaining performance obligations, which are contracted future revenues.
- The stock has fallen sharply and trades near $340 versus an average Wall Street 12‑month target above $530, as investors worry the pace of converting booked work into revenue may slow.
- The pullback accelerated after reports that Anthropic asked Broadcom to slow capacity deployment and Broadcom’s CEO said the company’s long‑range AI targets remain unchanged, highlighting a clash between reported contracts and customer timing.
- Analysts are split with some raising price targets to roughly $600 and calling Broadcom a buy while others flag customer concentration and timing risk, making upcoming quarters the key test of whether backlog converts into the growth and margins management forecasts.