Broadcom reported a record $15.01 billion in revenues for its Semiconductor Solutions division in Q2 of fiscal 2026, a 79% year-over-year increase, fueled by rising demand for AI semiconductors. AI semiconductor revenues alone surged 143% to $10.8 billion, with AI networking contributing nearly 40% of these sales. The company anticipates AI revenues reaching $16 billion in Q3, with total Semiconductor Solutions revenues projected at $20.5 billion.
Total remaining performance obligations have reached approximately $164.6 billion, bolstered by new long-term contracts for custom AI accelerators. Broadcom’s AI networking products are pivotal in scaling AI data centers, although the company faces increasing competition from NVIDIA and Advanced Micro Devices (AMD), which are rapidly expanding their own AI infrastructure offerings and capabilities.
Year-to-date, Broadcom’s stock has risen 10.7%, outpacing the Zacks Computer and Technology sector’s 6.9% gain. The Zacks Consensus Estimate for fiscal 2026 earnings is currently at $11.74 per share, reflecting a 72.14% increase versus fiscal 2025.
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