Broadcom’s AI Growth and Financial Performance
Broadcom (NASDAQ: AVGO) is witnessing rapid growth in its AI business, outpacing its infrastructure software and semiconductor solutions segments. The company reported record revenue of $13.7 billion for Q3 fiscal 2026, with a free cash flow (FCF) of $31.94 billion during the first three quarters, significantly outpacing its $9.28 billion in dividend payments. This strong financial position supports its ability to continue increasing dividends, which currently stands at $0.65 per share, payable on September 30.
Broadcom anticipates $115 billion in AI revenue for fiscal 2027, with projections soaring to $230 billion for fiscal 2028, largely driven by orders for its custom AI accelerators. Key customers include OpenAI and Anthropic, which may surpass Alphabet and Meta Platforms in XPU order volumes, signaling a potential shift in Broadcom’s customer base and revenue landscape.
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