AI semiconductors (custom XPUs)
AI semiconductor revenue reached $16.7 billion in fiscal Q3 2026, up 221% year over year. Management guided fiscal Q4 2026 AI revenue to $21.7 billion.
The numbers
What it is
Custom AI accelerators that Broadcom designs with its hyperscale and AI customers and sells as chips and rack-scale systems. Broadcom reports the revenue inside Semiconductor Solutions and does not split it into a separate segment. Named commitments include a 10-gigawatt collaboration with OpenAI on OpenAI-designed accelerators and a multi-generation partnership with Meta for its MTIA chips.
Why it matters to the stock. This is the largest growth driver in the company. Quarterly results and guidance now depend on it, and it is concentrated in a small number of customers.
News
WSJ reports Broadcom is arranging over $50 billion of financing for OpenAI custom chips
The Wall Street Journal reported on October 7, 2026 that Broadcom is working to arrange more than $50 billion of financing tied to custom AI chips it is building with OpenAI, under OpenAI's Nexus program.
Citi keeps Broadcom at Buy, lifts target to $515 and FY2027 AI view to $115B
Citi reaffirmed its Buy rating on Broadcom and raised its price target to $515 from $500 after the fiscal Q3 report.
Broadcom Q3 FY2026 revenue $29.6B; Q4 revenue outlook about $34.8B
Broadcom reported fiscal third-quarter 2026 results on September 2, 2026, for the quarter ended August 2.
Broadcom declares $0.65 quarterly dividend and reports $600 million of Q2 buybacks
In the same June 3, 2026 release, Broadcom's board declared a quarterly cash dividend of $0.65 per share, payable June 30, 2026 to holders of record on June 22.
Anthropic signs multi-gigawatt TPU compute deal with Google and Broadcom
Anthropic announced on April 6, 2026 a new agreement with Google and Broadcom for multiple gigawatts of next-generation TPU compute, with capacity expected to come online starting in 2027.
Broadcom warns TSMC capacity limits are constraining AI chip supply
On March 24, 2026, a Broadcom director of product marketing told Reuters that TSMC capacity has become a bottleneck for AI chip supply in 2026, and that shortages extend to lasers and optical circuit boards.
Hock Tan says Broadcom has line of sight to over $100 billion of AI chip revenue in 2027
On the fiscal Q1 2026 call, CEO Hock Tan said Broadcom has line of sight to AI semiconductor revenue in excess of $100 billion in fiscal 2027.
Broadcom authorizes $10 billion buyback and declares $0.65 quarterly dividend
With the fiscal Q1 2026 results, Broadcom declared a quarterly common dividend of $0.65 per share and announced a new share repurchase program of up to $10 billion running through December 31, 2026.
Broadcom says it has started shipping an industry-first 2nm custom compute SoC
Broadcom announced on February 26, 2026 that it had begun shipping what it calls the industry's first 2nm custom compute system-on-chip, built on its 3.5D XDSiP packaging platform.