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Broadcom Sharpens AI Push Against Nvidia With Record Q3 and Custom-Chip Wins

Rising XPU sales signal hyperscalers’ interest in Broadcom’s task-specific accelerators.

Overview

  • Broadcom reported fiscal Q3 revenue of $15.9 billion, up 22% year over year, with AI semiconductor sales rising 63% to $5.2 billion.
  • Custom AI accelerators led the gains, accounting for 65% of Broadcom’s AI revenue as major cloud customers work toward compute self-sufficiency.
  • The company logged a reported $10 billion order for AI racks from an unnamed fourth customer, which some had incorrectly associated with OpenAI.
  • Nvidia remains the leader, posting record fiscal Q2 revenue of $46.7 billion with $39 billion from data centers and guiding to $54 billion for Q3.
  • Broadcom’s shares have climbed about 96% over the past year versus roughly 33% for Nvidia, reflecting investor interest in energy-efficient ASICs versus flexible GPUs.