NEW YORK, March 6, 2026, 07:51 (EST)
Broadcom Inc projected current-quarter revenue at roughly $22.0 billion and outlined plans for AI chip sales topping $100 billion by 2027. The stock jumped nearly 4.8% early Friday. First-quarter revenue climbed 29% to $19.31 billion. 1
This update carries weight. Broadcom supplies custom AI chips and networking hardware to some of the largest cloud players, so its results are a real-world measure of ongoing AI infrastructure investment. The likes of Alphabet, Microsoft, Amazon, and Meta together are predicted to pour over $600 billion into AI-related infrastructure this year. 2
Broadcom stands apart from Nvidia. Rather than just offering off-the-shelf chips, it collaborates with customers like Google and OpenAI to build custom processors. The company is also in the business of selling the hardware that shuttles data between AI systems. 3
The company reported in a filing that AI semiconductor revenue surged 106% in the first quarter, hitting $8.4 billion, with custom AI chips and networking providing a boost. Chief Executive Hock Tan said, “our AI revenue growth is accelerating,” and flagged a projected $10.7 billion in AI semiconductor revenue for the second quarter. 1
During the earnings call, Tan mentioned Broadcom counts six large custom-chip clients, and predicted OpenAI would roll out its first volume-built custom chip with Broadcom in 2027. As for Meta, he described its MTIA AI chip initiative as “alive and well.” 4
Gil Luria at D.A. Davidson described Broadcom’s April quarter forecast—and its guidance stretching into 2027—as “very encouraging,” arguing that such long-range visibility signals real demand strength. Broadcom continues chasing Nvidia for AI chip dominance, while AMD isn’t far behind, eyeing major cloud contracts too. 3
Broadcom’s free cash flow jumped to $8.01 billion, while the company stuck with its quarterly dividend of 65 cents per share. The board also cleared a fresh $10 billion stock buyback program that stretches through late 2026, according to the filing. 1
Not every area moved in lockstep. Infrastructure software—home to VMware—barely nudged higher, up just 1% to $6.8 billion for the quarter. Compare that to the semiconductors unit, which jumped 52%, hitting $12.5 billion. 1
Tan pointed out the company relies heavily on just six major customers, and the real question is if these big spenders stay the course. Broadcom has flagged risks—trade rules, tight supplies, unpredictable buyer behavior—all of which could weigh on performance. Still, Tan noted they’ve locked in critical capacity until 2028. 1
