Overview
- Broadcom reported record third-quarter revenue of $29.6 billion driven by $16.7 billion in AI chip sales, according to the company’s Sept. 2 earnings release.
- The company guided fourth-quarter revenue to about $34.8 billion, a hair below the Street and a gap that prompted a steep post‑earnings drop in the stock.
- Management unveiled aggressive multi‑year AI shipment targets of roughly $115 billion for fiscal 2027 and $230 billion for fiscal 2028, backed by a multi‑quarter backlog the company says exceeds tens of billions.
- CFO Amie Thuener said Broadcom may offer 'residual value guarantees' to AI labs, a move that would shift some financial risk from hyperscalers to the chipmaker to secure large, long‑term orders.
- Broadcom is diversifying capacity with a multiyear Samsung manufacturing pact and faces rising competition from deals like Marvell’s partnership with Google, a dynamic that will shape who pays for and deploys vast hyperscaler data‑center buildouts.