Key Points
Broadcom (NASDAQ: AVGO) reported a remarkable 221% increase in AI semiconductor revenue, reaching $16.7 billion for its fiscal Q3 ending August 2, 2026. Despite this impressive growth, the market reacted negatively, resulting in a lackluster performance for the company’s stock this year.
In addition to the AI segment, Broadcom’s overall revenue rose by 86% with a 96% increase in diluted earnings per share. For fiscal Q4, the company anticipates revenue of approximately $34.8 billion, a 93% year-over-year increase, although management’s prior guidance was more conservative, forecasting $29.4 billion.
Broadcom is enhancing its custom AI chip division, partnering with clients like OpenAI and Alphabet, driving sustained demand for its application-specific integrated circuits. The potential for significant growth in this sector positions Broadcom as a compelling investment opportunity.
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