Broadcom Posts Record Q3 Revenue as AI Chip Sales Triple, Guides Strong FY Forecast

Broadcom (NASDAQ:AVGO) announced a blockbuster third quarter for fiscal 2026, with revenue climbing 86% year over year to roughly $29.6 billion, a new company record powered by soaring demand for artificial‑intelligence chips and custom accelerators . Adjusted earnings per share reached $3.32, edging past consensus estimates of $3.22 to $3.24 across multiple data sources .

The standout driver of this performance was the AI semiconductor segment, where sales more than tripled to $16.7 billion, representing a 221% YoY increase and a 54% quarter‑over‑quarter jump . This explosive growth underscores Broadcom's expanding role in the AI chip ecosystem, positioning it as a serious challenger to incumbents.

Looking ahead, Broadcom projected Q4 revenue of $34.8 billion, marginally below the $35.03 billion analyst consensus, and guided AI chip revenue to $21.7 billion for the quarter, a 236% YoY rise . While the guidance fell short of expectations, the company's multiyear outlook for its custom AI chip business remains upbeat, though the stock showed a modest post‑earnings dip in extended trading .

Analysts will monitor whether Broadcom can sustain its rapid AI revenue expansion without sacrificing valuation margins. Continued strength in AI demand could solidify its market share, but any slowdown may pressure the steep valuation premiums the stock currently commands.

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