New York, March 4, 2026, 16:50 EST — After-hours
Broadcom Inc. shares rose in after-hours trading on Wednesday after the company flagged a stronger near-term outlook for AI data-center chips. The stock was last up 1.1% at $317.53.
The report lands in a jittery stretch for chip stocks, where “beat and raise” has stopped being a guarantee of a clean rally. Investors want proof that hyperscalers are still spending, and that suppliers can defend margins while they chase the work.
Broadcom matters here because it sits in the plumbing of AI build-outs — custom accelerators and the networking silicon that moves data around big clusters — and it also runs a large infrastructure software business after buying VMware. When its outlook shifts, the read-through hits both hardware demand and corporate IT budgets.
Broadcom forecast second-quarter revenue of about $22.0 billion, above the $20.56 billion analyst average in LSEG data, as demand holds up for advanced chips used in AI workloads. Chief executive Hock Tan said the company expects AI semiconductor revenue of $10.7 billion in the quarter, a step-up from the prior period. 1
In its earnings release, Broadcom said first-quarter revenue rose 29% from a year earlier to a record $19.31 billion, and it posted adjusted profit of $2.05 per share. The company put first-quarter AI revenue at $8.4 billion, up 106% year-on-year, and Tan said, “Our AI revenue growth is accelerating.” Broadcom also authorized a new $10 billion share repurchase program through Dec. 31, 2026, and kept its quarterly dividend at $0.65 a share. 2
Traders came into the print braced for a bigger swing. Options pricing suggested Broadcom stock could move close to 8% in either direction by the end of the week, Investopedia reported, after the shares slid nearly a quarter from December highs. 3
But margins are still the fault line. A Visible Alpha note published by S&P Global Market Intelligence ahead of the release said analysts expected profitability to lag revenue growth as AI silicon and networking outpace higher-margin software, a mix shift that has weighed on the stock and its peers. 4
The initial after-hours move was tame versus what options traders had been pricing, suggesting investors are waiting for detail rather than just the headline beat. The tone on the call can still flip the tape quickly.
What investors listen for next is simple: how durable the AI orders look, how much networking growth is tied to a handful of customers, and whether Broadcom can hold its profit profile as volume ramps. The next catalyst is the company’s 5 p.m. ET earnings call, where management is expected to take questions on the $22 billion revenue view and the pace of buybacks.
