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    Broadcom Reports Sharp Rise in AI Semiconductor Revenue

    Broadcom posts Q3 results showing AI semiconductor revenue at $16.7B with 221 percent growth.

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    5 Sources, 28d ago, first seen 28d ago

    TLDR

    Broadcom released its quarterly results. AI semiconductor revenue hit $16.7B in the latest quarter, up 221 percent year over year and 54 percent sequentially. Total revenue reached $29.6B, an 86 percent increase. Executives said demand stayed hot and six XPU customers are speeding adoption of custom accelerators. Posts also cite company projections for AI semiconductor revenue reaching $115B in 2027 and $230B in 2028. One observer noted heavy dependence on future ramps at Anthropic and OpenAI while Google received vaguer guidance.

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    5 Sources, first seen 28d ago

    Combined views

    123.3K

    5 Sources, first seen 28d ago

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    45 comments
    216 saves
    30 reposts

    Sentiment

    Positive——Negative

    Summary

    Not enough discussion yet.

    No sentiment analysis available yet.

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    5 Sources

    @rohanpaul_aiBroadcom quarterly results are out and now it expects AI chip revenue to double in 2027 and 2028 they say AI semiconductor revenue could hit $115B in 2027 and $230B in 2028, doubling twice. In the latest quarter the AI semiconductor revenue reached $16.7B, up 221%, while Broadcom's total revenue rose 86% to $29.6B. That puts AI semiconductors at roughly 56% of Broadcom's quarterly revenue, and making custom accelerators and AI networking central to its growth. Broadcom expects the AI line to climb again to $21.7B in Q4, up 236% year over year, against $34.8B of total revenue guidance. At those numbers, AI semiconductors would approach 62% of quarterly sales, showing how quickly Broadcom's revenue mix is moving toward AI infrastructure.
    @firstadopterBroadcom earnings call. Best hand-picked excerpts: “This was our Q3 AI semiconductor revenue, which grew 221% year on year and up 54% sequentially.” “Demand was simply hot and we're just getting started. Our six XPU customers are accelerating their adoption of custom accelerators and AI semiconductor revenue." TPU v8i “is comparable, if not surpasses the Vera Rubin GPU.” “Broadcom is now shipping the TPU version eight ahead of the Mediatek version” “In Q3, we also shipped Jalapeno OpenAI first generation custom accelerator, which outperforms Grace Blackwell's GPU for inference workloads.” On Google TPUs: “We are planning to deliver multi tens of billions of dollars of TPUs annually over the next several years. We expect this growing demand in 28 and 29 to be fulfilled through successive generations of the increasingly complex TPUs.” “We expect Anthropic to deploy another five gigawatts of TPU version eight in 2027. And in 2028, we have clear line of sight to deliver another and incremental ten gigawatts even as we expect Google to grow for us.” “Anthropic is on track to become our largest XPU customer in 2027.” “OpenAI .. on track for the planned deployment of 1.3GW in 2027 .. we have a line of sight for OpenAI to deploy over five gigawatts of Jalapeno and its successors [in 2028] .. would make OpenAI our second largest .. customer” "Here is our outlook for our AI semiconductor revenue. In 2027, we have secured the supply to again double AI revenue to approximately $115 billion. Our demand actually exceeds this outlook and we will work to improve supply. In 2028, we expect the trajectory of growth to continue. We have line of sight for fiscal 2028 a semiconductor revenue growth to again double to $230 billion. Here again, we have secured the supply to meet this outlook.” “As a result, I got to say, we are very much on target to exceed $30 in earnings per share in fiscal 2028.” OpenAI and Anthropic: “They are using cloud services third party services to deploy their models. Long term, we see these guys to be no different from a hyperscaler and will run their own data centers and be first party to offer generative AI APIs .. models to the world. So we see that happening. It's not speculation. It's actually happening. And we are in the midst of enabling that” Net-net: Looks like Jensen secured the HBM for 2027! Broadcom's 2027 AI revenue guidance is disappointing relative to buyside bogeys, but the 2028 outlook is strong. That said, you have to discount a two year out guide.
    @zephyr_z9"OpenAI plans 1.3 GW in FY27 and >5 GW in FY28" So, over 1M Jalapeno Gen1 in 2027 (assuming 1.1kW All in System Power) and nearly 4.5M Jalapeno Gen1 equivalents in 2028 Big ramp

    5 Sources

    @rohanpaul_aiBroadcom quarterly results are out and now it expects AI chip revenue to double in 2027 and 2028 they say AI semiconductor revenue could hit $115B in 2027 and $230B in 2028, doubling twice. In the latest quarter the AI semiconductor revenue reached $16.7B, up 221%, while Broadcom's total revenue rose 86% to $29.6B. That puts AI semiconductors at roughly 56% of Broadcom's quarterly revenue, and making custom accelerators and AI networking central to its growth. Broadcom expects the AI line to climb again to $21.7B in Q4, up 236% year over year, against $34.8B of total revenue guidance. At those numbers, AI semiconductors would approach 62% of quarterly sales, showing how quickly Broadcom's revenue mix is moving toward AI infrastructure.
    @firstadopterBroadcom earnings call. Best hand-picked excerpts: “This was our Q3 AI semiconductor revenue, which grew 221% year on year and up 54% sequentially.” “Demand was simply hot and we're just getting started. Our six XPU customers are accelerating their adoption of custom accelerators and AI semiconductor revenue." TPU v8i “is comparable, if not surpasses the Vera Rubin GPU.” “Broadcom is now shipping the TPU version eight ahead of the Mediatek version” “In Q3, we also shipped Jalapeno OpenAI first generation custom accelerator, which outperforms Grace Blackwell's GPU for inference workloads.” On Google TPUs: “We are planning to deliver multi tens of billions of dollars of TPUs annually over the next several years. We expect this growing demand in 28 and 29 to be fulfilled through successive generations of the increasingly complex TPUs.” “We expect Anthropic to deploy another five gigawatts of TPU version eight in 2027. And in 2028, we have clear line of sight to deliver another and incremental ten gigawatts even as we expect Google to grow for us.” “Anthropic is on track to become our largest XPU customer in 2027.” “OpenAI .. on track for the planned deployment of 1.3GW in 2027 .. we have a line of sight for OpenAI to deploy over five gigawatts of Jalapeno and its successors [in 2028] .. would make OpenAI our second largest .. customer” "Here is our outlook for our AI semiconductor revenue. In 2027, we have secured the supply to again double AI revenue to approximately $115 billion. Our demand actually exceeds this outlook and we will work to improve supply. In 2028, we expect the trajectory of growth to continue. We have line of sight for fiscal 2028 a semiconductor revenue growth to again double to $230 billion. Here again, we have secured the supply to meet this outlook.” “As a result, I got to say, we are very much on target to exceed $30 in earnings per share in fiscal 2028.” OpenAI and Anthropic: “They are using cloud services third party services to deploy their models. Long term, we see these guys to be no different from a hyperscaler and will run their own data centers and be first party to offer generative AI APIs .. models to the world. So we see that happening. It's not speculation. It's actually happening. And we are in the midst of enabling that” Net-net: Looks like Jensen secured the HBM for 2027! Broadcom's 2027 AI revenue guidance is disappointing relative to buyside bogeys, but the 2028 outlook is strong. That said, you have to discount a two year out guide.
    @zephyr_z9"OpenAI plans 1.3 GW in FY27 and >5 GW in FY28" So, over 1M Jalapeno Gen1 in 2027 (assuming 1.1kW All in System Power) and nearly 4.5M Jalapeno Gen1 equivalents in 2028 Big ramp