Key Points:
- Broadcom beats Q4 estimates with strong AI chip demand
- AI semiconductor revenue surges 74% year over year
- Company guides higher with $19.1B revenue outlook
Broadcom posted stronger than expected fourth quarter results and issued an outlook that topped analyst projections. The company delivered higher earnings and revenue driven by steady demand for its AI semiconductor products and core infrastructure software. Broadcom stock moved sharply after the report. It rose at first but later traded lower as investors reacted to the guidance. Leadership said the company continues to see firm demand across its AI hardware portfolio.
Broadcom earned an adjusted 1.95 dollars a share on sales of 18.02 billion dollars in the quarter that ended on November 2. Analysts had expected 1.87 dollars a share on sales of 17.47 billion dollars. Earnings rose 37 percent from last year, while sales increased 28 percent. Executives said the performance came from strong orders for AI chips and stable results in other business units.
AI Demand Drives Revenue Growth
For the current quarter ending February 1, Broadcom expects revenue of 19.1 billion dollars. This would be a 28 percent increase from the same period last year. Analysts had been modeling 18.38 billion dollars. Company leaders said they see continued momentum in AI-related spending from large cloud and technology customers.
The stock jumped more than 3 percent in after-hours trading when the report was released. It later reversed and fell more than 3 percent to about 392 dollars. During the regular session earlier in the day, the stock declined 1.6 percent and closed at 406.37 dollars. The stock reached a record high of 414.61 dollars in intraday trading the day before.
Broadcom stock leaders credited the quarter’s outperformance to rising demand for AI chips. AI semiconductor revenue rose 74 percent year over year. Executives said they expect this trend to continue as customers scale their AI workloads. The company plans to ship more custom AI accelerators and Ethernet-based AI switches to meet this demand.
Leadership Sees Continued Momentum In AI Hardware
Chief Executive Hock Tan said AI remains the company’s strongest growth driver. He expects AI semiconductor revenue to double year over year in the current quarter to reach 8.2 billion dollars. Leaders said customers are expanding their investments in specialized AI hardware that supports training, inference, and large model operations. This includes a mix of custom accelerators and networking components that tie high-performance systems together.
Broadcom stock supplies custom AI chips for major customers, including Google and Meta. It also sells switch and router chips used in large AI data centers. Executives said the company is well-positioned due to its experience building custom silicon and its broad portfolio of networking products. They said demand from cloud customers has become more predictable as AI workloads move into long-term planning cycles.
The company also announced a 10 percent increase in its quarterly dividend to 65 cents a share for fiscal 2026. Leaders said the increase reflects confidence in future cash flow. Broadcom has raised its dividend for 15 straight years. Executives said they aim to maintain a balanced approach to investment, innovation, and shareholder returns.
Broadcom Maintains Focus On Execution And Scale
Business leaders observing the semiconductor market note that Broadcom’s stock results highlight the growing divide between companies with scalable AI hardware and those still adapting to new workloads. Broadcom has leaned on its custom chip capabilities to secure long term commitments from large cloud operators. This strategy has helped the company stay aligned with fast-moving AI infrastructure needs. It has also given customers more room to differentiate their internal systems.
Executives said they plan to continue investing in AI hardware, networking technologies, and infrastructure software. They expect the growth of AI data centers to remain a long-cycle trend. Business owners and entrepreneurs watching the sector may view Broadcom’s results as a signal of continued demand for specialized computing and high-bandwidth networking. Leaders across industries are planning for expanded AI adoption, and chip suppliers that can scale production may be positioned to benefit.
Broadcom stock enters the new fiscal year with steady demand, strong earnings, and a clear focus on execution. Leadership said the company will continue building on its semiconductor strength while supporting the growth of AI-driven systems. The next quarter will show whether the current momentum continues as customers ramp up investments in advanced computing capabilities.
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