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Broadcom’s Q3 Tops Estimates as AI Sales Surge and Fourth Hyperscaler Places Production Orders

Investor enthusiasm reflects record bookings alongside a new hyperscaler production win that signals rising demand for Broadcom’s custom AI chips.

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Overview

  • Broadcom reported roughly $16 billion in fiscal Q3 2025 revenue, up 22% year over year, with adjusted earnings of $1.69 per share, up 36%.
  • AI chip revenue rose 63% to $5.2 billion, and management guided AI sales to $6.2 billion in the current quarter, implying nearly $20 billion for fiscal 2025.
  • The company ended the quarter with a record $110 billion in bookings, which CEO Hock Tan attributed to strong demand tied to AI.
  • Broadcom disclosed production orders from a fourth hyperscale customer, and multiple reports say one buyer placed orders exceeding $10 billion, widely believed by analysts to be OpenAI though Broadcom has not confirmed the identity.
  • Shares have rallied sharply over the past year, lifting the forward P/E to about 61 times, even as some commentators note NVIDIA’s technological lead in AI chips.