Overview
- Broadcom reported AI semiconductor revenue jumped 221% year over year to $16.7 billion in its fiscal third quarter, and posted non‑GAAP EPS of $3.32 on $29.59 billion in total revenue.
- Management guided AI chip revenue to $21.7 billion for the next quarter and updated a multi‑year outlook that raises expected AI chip sales to roughly $230 billion through fiscal 2028.
- Broadcom is the design partner for major custom accelerators from Google, OpenAI and Meta, and the company says shipments of its Ironwood TPU family will ramp to Anthropic in the near term with Anthropic expected to be the largest XPU buyer in 2027.
- Investors reacted cautiously after the quarter because revenue guidance fell slightly short of some forecasts and rising memory costs are pressuring margins, highlighting the risk that booked demand may not convert into near‑term profit.
- The key watch points are Broadcom's ability to secure memory and manufacturing capacity, to deliver chips on schedule, and to help customers deploy racks given data‑center power and land limits, any of which could change customer concentration and the revenue path.