Broadcom’s AI Semiconductor Revenue Soars
Broadcom announced a 143% year-over-year growth in AI semiconductor revenue, reaching $10.8 billion in Q2 2026. The company expects this figure to exceed $16 billion this quarter, representing more than 200% growth year-over-year. Total revenue for the fiscal second quarter also increased by 48% to $22.2 billion.
CEO Hock Tan highlighted that Broadcom has secured six core custom-chip customers, including OpenAI, Anthropic, Meta Platforms, and Alphabet. The collaboration with OpenAI led to the development of Jalapeño, a custom inference chip unveiled in June, designed for dedicated AI tasks and capable of drawing 10 gigawatts of power.
Despite this impressive growth, Broadcom’s shares are down 24% from their 52-week high of $495. Risks, including customer concentration and pricing power issues in the custom semiconductor market, contribute to the share price’s pullback.
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