Broadcom stayed on the sidelines during the artificial intelligence boom, but it actually made a lot of money from it. The company recently reported for the third quarter of fiscal 2026 that its artificial intelligence chip sales revenue will double to $115 billion by the end of next year, and then double again to $230 billion by the end of fiscal 2028.
Image source: Broadcom
Until then, as CEO Hock Tan said in Report an incidentBroadcom expects specific earnings per share to increase to $30. Broadcom’s involvement in the AI boom revolves around creating custom chips for customers such as Google, OpenAI, Anthropic and Meta.✴Broadcom’s revenue efforts justify management’s ambitious forecasts, as the number of people looking to receive these products, as well as order volumes, are growing steadily. In the field of customized chips in the next fiscal year starting in November this year, Anthropic will become Broadcom’s largest customer, but OpenAI will jump to second place. As Hock Tan explained, Broadcom currently has six customers in the field, four of which are the largest players in the AI market. Broadcom cannot fully meet the demand for such components.
In addition, the company’s revenue is growing due to the rapid development of data center infrastructure that Broadcom provides for its telecom components. Capital spending by the five largest hyperscalers will total more than $700 billion this year, so Broadcom will inevitably shoulder some of that. Notably, Broadcom’s revenue forecast for the current quarter disappointed analysts, as their average estimate was $35.1 billion, while the company itself set guidance of $34.8 billion. Directly speaking, AI chips will bring revenue of US$21.7 billion to the company in the fourth fiscal quarter, almost in line with market expectations.
Broadcom’s third-quarter revenue rose 86% to $29.6 billion, slightly higher than analysts’ expectations of $29.5 billion. Specific earnings per share were $3.32, so the company’s goal of growing it nearly tenfold over the next two years looks pretty ambitious. At the end of last quarter, AI chip sales revenue reached US$16.7 billion, slightly exceeding market expectations. The amount also includes telecommunications solutions, not just custom chips to accelerate computing.
As the head of the company admitted, it is accelerating its cooperation with Google, Anthropic and OpenAI. In the next few years, Google alone will receive tens of billions of dollars worth of customized chips from Broadcom. Anthropic will acquire enough chips from Broadcom next year to create a data center with a capacity equivalent to 5 GW. In another year, that number will double. In response to OpenAI’s demand, more than 5GW of equivalent chips will be supplied in fiscal year 2028. By the end of 2027, Broadcom will deliver Meta✴ Three generations of custom chips. The latter is its fourth largest customer.
In order to solve the problem of shortage of materials and parts, Singapore Broadcom has launched the production of wafer substrates with the participation of partners. Broadcom chiefs believe it’s appropriate to call the company a serious competitor to Nvidia, since the latest generation of accelerators developed for Google’s needs are said to perform better than Vera Rubin. Once again, Broadcom has enough competitors in the development of customized chips – not only Marvell, but MediaTek is also preparing to cooperate with Google in this field.
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