Broadcom's AI chip revenue more than doubled to $8.4 billion in Q1 2026, with management targeting $100 billion by 2027, while the company maintains a 15-year streak of annual dividend increases.

Broadcom's custom AI processors saw a 140% increase in sales in the first quarter of 2026, driven by expanding deals with Alphabet, Meta, Anthropic, and OpenAI. The company also expanded its partnership with Google through 2031 to design Google's tensor processing units (TPUs) and supply networking components.

AI-specific semiconductor revenue more than doubled in Q1 2026 to $8.4 billion (about 43% of total revenue), while AI networking revenue rose 60% to $2.8 billion (about one-third of AI sales). Broadcom's custom processors can be designed specifically for a tech company's large language models, making them more efficient.

Management estimates Broadcom's AI chip revenue will reach $100 billion by 2027. The company returned $3.1 billion to shareholders in Q1 2026 ($0.65 per share) and has increased its dividend annually for 15 consecutive years.

Broadcom's stock climbed 79% over the past year and has a trailing price-to-earnings ratio of nearly 81, significantly higher than the tech sector's average P/E of 36.