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Broadcom Inc. reports strong Q3 earnings and projects $350 billion in AI semiconductor revenue over the next two years

Broadcom Inc. reported strong third-quarter fiscal 2026 results, with revenue reaching $29.59 billion, an 86% increase year-over-year. The company's AI semiconductor revenue alone reached $16.7 billion, representing a 221% year-over-year growth. Non-GAAP earnings per share reached $3.32, exceeding analyst expectations and extending a nine-quarter streak of beating estimates. CEO Hock Tan projected that the company will ship $115 billion of AI semiconductors to six key hyperscaler customers in fiscal 2027, with revenue expected to double to $230 billion in fiscal 2028. This total projected revenue of $350 billion over the next two years is driven by significant demand from customers such as Meta, Google, and Anthropic. Despite the strong fundamentals, Broadcom Inc. stock experienced a slight decline in premarket trading and during the Thursday market session. Analysts noted that the company's high free cash flow margin and strong demand for custom AI chips continue to provide a positive outlook for the company's future growth.

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