Key Points
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Broadcom’s custom data center accelerators can outperform Nvidia’s latest chips in processing AI workloads, with major clients including OpenAI, Anthropic, Alphabet, and Meta Platforms.
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The company’s shares, currently valued at $1.77 trillion, need a 13% rise to rejoin the $2 trillion market cap club.
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Broadcom reported $29.6 billion in revenue for Q3 of fiscal 2026, an 86% increase year-over-year, with AI semiconductor sales jumping 221% to $16.7 billion.
Broadcom’s innovative AI chip solutions are gaining traction among leading tech firms, significantly contributing to its financial success. Key client partnerships include Alphabet, which utilizes Broadcom’s custom Tensor Processing Units (TPUs) for its AI models and cloud services.
Despite currently being down 23% from its June peak due to concerns over AI infrastructure sustainability, Broadcom forecasts continued strong growth in AI revenue, projecting $115 billion in fiscal 2027 and a potential double to $230 billion in fiscal 2028.
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