Broadcom delivered its ninth consecutive earnings beat Wednesday, reporting fiscal third-quarter revenue of $29.59 billion — up 86% year-over-year — as demand for custom AI accelerators and networking chips continues to surge.
The standout figure was AI semiconductor revenue of $16.7 billion, which more than tripled year-over-year (up 221%) and grew 54% sequentially from the prior quarter. AI chips now account for roughly 56% of total company revenue, up from just 14% two years ago, reflecting the seismic shift in Broadcom's business model.
CEO Hock Tan guided fourth-quarter AI semiconductor revenue to $21.7 billion — a figure that would represent a 236% year-over-year increase and implies the full-year FY26 AI revenue will approach $58 billion, up 186% from the prior year. The guidance exceeded Street expectations of roughly $19 billion.
The results underscore Broadcom's dominant position in custom AI silicon, where it designs chips for hyperscale customers including Google (TPUs), Meta, and ByteDance. The company's networking business, which supplies Ethernet switching chips for AI data centers, also contributed significantly to growth.
Non-GAAP earnings per share came in at $3.32, beating the $3.24 consensus. Revenue from the broader semiconductor solutions segment was $21.3 billion, while infrastructure software revenue was $8.3 billion. Broadcom's stock, which has risen more than 30% this year on AI demand, was up in after-hours trading following the results.
