Broadcom's AI chip revenue surges 143%, but stock falls after company holds fiscal 2027 guidance at over $100 billion.

Broadcom's semiconductor revenue jumped 79% to $15.1 billion in the quarter, with AI semiconductor revenue surging 143% to $10.8 billion. The company forecasts AI semiconductor revenue will grow 180% year over year to $56 billion this fiscal year, before climbing to more than $100 billion in fiscal 2027.

Despite strong results — overall revenue soared 48% year over year to $22.19 billion and adjusted EPS climbed 54% to $2.44 — investors were disappointed that Broadcom did not increase its fiscal 2027 custom AI chip sales target. The company also missed analyst revenue expectations due to slower-than-expected growth in its software segment.

Broadcom locked in supply chain support with six core customers including Alphabet, Meta Platforms, OpenAI, and Anthropic. For fiscal Q3, the company expects revenue to climb 84% to $29.4 billion, led by a projected 200% increase in AI semiconductor revenue to $16 billion.