AI Generated Image
Broadcom Earnings: AI Chip Sales Tripled. Here’s the $34.8 Billion Number Investors Need to Watch.
The Motley Fool • • business
Key Points:
- Broadcom reported explosive Q3 2026 results with revenue of $29.59 billion, up from $15.95 billion a year earlier, and adjusted EPS of $3.32, nearly doubling from $1.69.
- The company’s AI chip revenue surged 221% year-over-year to $16.7 billion, with total semiconductor sales up 127% and infrastructure software revenue rising 29%.
- Broadcom generated $14.2 billion in operating cash flow and $13.7 billion in free cash flow, reflecting strong financial health despite spending $500 million on capital expenditures.
- Q4 revenue guidance of $34.8 billion slightly missed Wall Street’s $35.03 billion expectation, causing some investor concern amid high market expectations for AI-related growth.
- Although Broadcom has secured a long-term AI chip supply deal with Google through 2031, competition and customer diversification efforts pose potential risks to future growth momentum.
