Broadcom projects $21.7 billion in AI chip revenue

Broadcom's third-quarter results showed AI semiconductor revenue surging 221% to $16.7 billion, which already made up the majority of its total sales. Now management is guiding for $21.7 billion in AI chip revenue in the fourth quarter, paired with about $34.8 billion in companywide revenue and a 66% non-GAAP operating margin. This means the company is not just growing AI sales but doing so while keeping an unusually rich profit profile. That success, however, comes with heavier exposure to a relatively small group of hyperscale customers, so investors are effectively getting faster AI concentration and greater customer concentration at the same time. The outcome hinges on whether that customer base keeps spending at the current pace and whether Broadcom can sustain its margin as the AI mix rises.