After-hours trading on Wednesday, chipmaker Broadcom’s(****) shares rose slightly after the company issued an optimistic outlook for the next fiscal year and signaled growth in its AI lab business. Below is how its results compared with LSEG consensus estimates:
EPS:Adjusted $3.32 vs. $3.24 expectedRevenue:$29.59 billion vs. $29.36 billion expected
According to LSEG data, Broadcom guided fiscal fourth-quarter revenue at $34.8 billion, versus analyst expectations of $35.03 billion. In a statement, Broadcom said quarterly revenue rose 86% from $15.95 billion a year earlier. Net income more than doubled, from $4.14 billion, or $0.85 per share, to $13.09 billion, or $2.68 per share. From these figures, Broadcom’s average daily profit for the quarter works out to about RMB 968 million.
Broadcom has been one of the main beneficiaries of the AI boom, designing custom chips for companies including Google, Meta, and OpenAI. Since late 2022, its shares have risen more than sixfold, coinciding with the emergence of ChatGPT and other generative AI services, lifting its market value to about $1.8 trillion. Year to date, however, the stock has lagged the broader market. As of Wednesday’s close, Broadcom was up about 6% in 2026, while the S&P 500 was up 12%.
This quarter, Broadcom heavily promoted its custom Jalapeño chips developed with OpenAI, while Apple said it would increase spending on chip production with Broadcom in the United States. CEO Hock Tan said on the conference call that Broadcom expects to accelerate deliveries of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google. He said Broadcom will deliver tens of billions of dollars of processors to Google each year in the coming years.
