- Broadcom guided fiscal Q4 AI semiconductor revenue to $21.7 billion, about 62.4% of its ~$34.8 billion companywide revenue forecast, roughly six percentage points above the Q3 AI mix.
- Q3 AI semiconductor revenue rose 221% to $16.7 billion, or about 56.4% of Broadcom's $29.59 billion in total sales, with management targeting a 66% non-GAAP operating margin in fiscal Q4.
- Custom accelerators and high-speed networking remain the growth engines, but the mix shift increases exposure to a small group of hyperscale customers even as infrastructure software operations diversify the business.
- Broadcom shares gained about 0.2% to $358.13, a price 12.42% below the $408.91 GF Value estimate.
Quotes
“Broadcom expects AI silicon to produce nearly two-thirds of next quarter’s revenue.”
“AI semiconductor revenue surged 221% to $16.7 billion in the third quarter, accounting for roughly 56.4% of Broadcom's $29.59 billion in total sales.”