Broadcom lifts fiscal 2027 AI chip revenue outlook to about USD 115bn as shares lag
Broadcom posted record Q3 results with 86% revenue growth and 46% free-cash-flow margin, while AI semiconductor revenue surged 221% YoY. Management guided to stronger Q4 and raised its FY2027 AI chip revenue outlook, citing sustained demand for custom AI accelerators and networking tied to major AI labs. The update reinforces the AI infrastructure capex narrative, though elevated yields and competitive risks may temper valuation upside.
AI Insight · NCSKAVGO2USD/USDTAI Insight
▲ Bullish
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Broadcom raised its fiscal 2027 AI chip revenue forecast to about USD 115bn and said it expects the figure to roughly double to USD 230bn in fiscal 2028. In the third quarter, the company posted revenue of $29.6 billion, up 86 percent from a year earlier. AI semiconductor revenue rose to $16.7 billion, an increase of 221% year over year.