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.↗ source
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.