Broadcom is ending the week on a high note.
On Thursday, September 4, the semiconductor and infrastructure software company announced its third-quarter financial results, including $15.95 billion in revenue.
This figure was a 22% jump year-over-year (YOY) and beat Wall Street’s predicted $15.83 billion, according to consensus estimates cited by CNBC. Broadcom anticipates this streak to continue, announcing an expected $17.4 billion in revenue for quarter-four, up from Wall Street’s prediction of $17.02 billion.
Broadcom also beat estimates for earnings per share, coming in at $1.69 adjusted, rather than $1.65 expected.
‘Demand for custom AI accelerators’
Unsurprisingly, the artificial intelligence boom factored heavily into Broadcom’s results.
“Revenue growth was driven by better-than-expected strength in AI semiconductors and our continued growth in VMware,” Broadcom’s president and CEO, Hock Tan, said in an earnings call. “Demand for custom AI accelerators from our three customers continued to grow.”
However, Broadcom also announced that it’s bringing a fourth “very significant customer” into the mix.
The mystery customer has ordered $10 billion worth of custom AI chips or XPUs. These should ship early next year, with Broadcom expecting a significant improvement to its fiscal 2026 AI revenue from its previous estimations.
These positive announcements culminated in Broadcom’s stock price (Nasdaq:AVGO) rising more than 15% after-hours and into premarket trading on Friday. It’s a big turnaround from earlier this week when Broadcom’s shares fell 2.1% alongside a 2.3% dip by fellow chipmaker, Nvidia.
Last month, Apple also named Broadcom as one the suppliers it’s working with to accelerate American manufacturing.
