Broadcom beats on earnings and guidance as AI revenue doubles

Broadcom shares were unchanged in extended trading on Wednesday after the chipmaker reported stronger results and quarterly revenue guidance than analysts had projected.

• Earnings per share: $2.05 adjusted vs. $2.03 estimated
• Revenue: $19.31 billion vs. $19.18 billion estimated

Broadcom’s revenue grew 29% year over year during the fiscal first quarter, which ended on Feb. 1, according to a statement.

Net income of $7.35 billion, or $1.50 per share, increased from $5.50 billion, or $1.14 per share, in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation and tax adjustments.

For the fiscal second quarter, Broadcom said it anticipates a 68% adjusted margin of earnings before interest, tax, depreciation and amortization. The company said it’s looking for $22.0 billion in fiscal second-quarter revenue. Analysts polled by LSEG had expected $20.56 billion in revenue.

Broadcom helps other companies translate their chip designs into silicon, providing intellectual property and backend technologies before they’re sent off to chip fabrication plants from companies such as Taiwan Semiconductor Manufacturing Company. It’s a role that’s gained importance as Amazon, Google, Meta and Microsoft design customized chips.

The company has benefited from rising demand for artificial intelligence infrastructure, with AI revenue rising 106% to $8.4 billion in the quarter.

CEO Hock Tan said in the statement that AI revenue in the period more than doubled to $8.4 billion “driven by robust demand for custom AI accelerators and AI networking.” Tan had called for a doubling of AI revenue in December. Broadcom contributes to the development of Google’s tensor processing units, or TPUs.

Tan said the company expects AI semiconductor revenue of $10.7 billion this period.

Broadcom reported $12.52 billion in revenue from semiconductor solutions, higher than the $12.25 billion total that analysts polled by StreetAccount. During the quarter, Broadcom announced new Wi-Fi 8 chips.

For infrastructure software, Broadcom said it generated $6.80 billion in revenue, lower than StreetAccount’s $7.02 billion consensus.

Broadcom’s board has authorized up to $10 billion in new share buybacks through 2026.

In December Tan said Anthropic had placed a $10 billion custom chip order. Last week U.S. Defense Secretary Pete Hegseth said the Pentagon would dub Anthropic a “supply chain risk to national security” and President Donald Trump directed government agencies to stop using Anthropic after the artificial intelligence startup refused to permit uses of its technology for mass domestic surveillance or fully autonomous weapons.

As of Wednesday’s close, Broadcom shares were down 8% so far in 2026, while the S&P 500 index was flat.

Executives will discuss the results on a conference call starting at 5 p.m. ET.

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