Key Highlights

  • Broadcom (NASDAQ:AVGO) reported fiscal third quarter 2026 revenue of USD 29.6 billion, up 86%, with AI semiconductor revenue of USD 16.7 billion, up 221% from a year earlier and 54% from the prior quarter.
  • Non-GAAP diluted earnings were USD 3.32 per share, and GAAP diluted earnings were USD 2.68, in results released on September 2, 2026 for the quarter ended August 2, 2026.
  • Fourth quarter guidance is revenue of about USD 34.8 billion, up 93%, and AI semiconductor revenue of about USD 21.7 billion, up 236%, with a quarterly dividend of USD 0.65 per share.
  • Broadcom is shown at USD 1.6 trillion on a published chart of AI deal links, with arrows to Google, Anthropic and OpenAI as custom chip customers.

The Quarter in Numbers

Broadcom (NASDAQ:AVGO) reported on September 2, 2026 that AI semiconductor revenue reached USD 16.7 billion, which is 56% of total revenue of USD 29.6 billion, simple arithmetic on two reported numbers. The company guided the next quarter to USD 34.8 billion of revenue and USD 21.7 billion of AI revenue, which would take the AI share to about 62%. Fourth quarter results, for the period ending November 1, 2026, are expected in December, and the date was not confirmed. Compared with Nvidia (NASDAQ:NVDA), Broadcom sells custom accelerators designed with each customer, not a general GPU. Each design cycle is long, so revenue visibility is high, and the guidance reflects orders already in progress.

The Custom Chip Loop

Broadcom builds custom accelerators, called XPUs, for large customers. Reports describe Google and Anthropic receiving Ironwood TPU chips in volume, Meta Platforms (NASDAQ:META) as a customer and OpenAI shipping its first custom chip. Anthropic was reported to plan 15 gigawatts of TPU capacity between 2027 and 2028, and a May 2026 report described a USD 200 billion Anthropic commitment to Google Cloud. Alphabet (NASDAQ:GOOGL) funds and hosts Anthropic, so Broadcom revenue partly rests on a customer financed by its own customers' balance sheets. These figures are reported, not from the filing, and they show how a few buyers can set the pace of a whole product line.

Risks and What to Watch

Customer concentration is the key risk, since a few labs and hyperscalers drive most AI revenue. A third-party summary cited AI revenue targets of about USD 58 billion for fiscal 2026, USD 115 billion for 2027 and USD 230 billion for 2028, which are reported and not confirmed. If funding for the labs tightens, orders could slow, and a custom chip cannot easily be resold to another customer. That is the opposite of a standard GPU, and it raises the cost of a customer failure. Watch gross margin, customer additions and Nvidia competition at the December report, plus capex commentary from Alphabet and Amazon (NASDAQ:AMZN) on October 28 and 29, since those budgets feed directly into Broadcom orders. Gross margin is another point, because custom chip programs can carry lower margins than software or networking.

Where Things Stand

Broadcom (NASDAQ:AVGO) is surging because hyperscalers and AI labs are turning to custom chips for lower cost and tighter control, and Broadcom is the main design partner. The evidence is strong on current numbers, since revenue and guidance come from the company release, but it is mixed on durability because the customers are few and funded by overlapping investors. December results will test the guide.