Pedestrians walk by a sign in front of a Broadcom office on December 12, 2024 in San Jose, California.
Justin Sullivan | Getty Images
Broadcom shares dropped 5% in extended trading on Wednesday after the chipmaker issued disappointing guidance for the current quarter.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: $3.32 adjusted vs. $3.24 expected
- Revenue: $29.59 billion vs. $29.36 billion expected
For the fiscal fourth quarter, Broadcom said it expects revenue of $34.8 billion, while analysts were expecting $35.03 billion, according to LSEG.
Broadcom’s revenue increased 86% during the quarter from $15.95 billion a year ago, according to a statement. Net income more than tripled to $13.09 billion, or $2.68 per share, from $4.14 billion, or 85 cents per share a year earlier.
Broadcom has been one of the major winners of the artificial intelligence boom, designing custom chips for companies including Google, Meta and OpenAI. The stock has jumped by more than sixfold since the end of 2022, coinciding with the emergence of ChatGPT and other generative AI services, pushing its market cap to about $1.8 trillion.
But the shares have lagged the broader indexes this year. As of Wednesday’s close, Broadcom shares had gained about 6% in 2026, while the S&P 500 index is up 12% in the same period.
During the quarter, Broadcom touted the custom Jalapeno chip it developed with OpenAI, while Apple said it would spend more with Broadcom for U.S. chip production.
CEO Hock Tan said Broadcom expects to speed up shipments of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google.
He said Broadcom will deliver tens of billions of dollars of processors to Google each year for the next several years.
“Shipments of Jalapeno for OpenAI will continue, and for Meta, we expect production shipments of their custom MTIA accelerator optimized for inference and recommendation at scale,” Tan said.
Broadcom is looking for Anthropic to deploy deploy 5 gigawatts of TPU 8i chips in 2027, with line of sight to deliver another 10 gigawatts, Tan said. Tan said OpenAI is getting ready to tape out its second-generation chip, and the lab is putting together plans with Broadcom for a third version.
He said Broadcom is looking at a 1.3 gigawatt deployment of Jalapeno in 2027, with a line of sight of over 5 gigawatts for Jalapeno and the second generation.
For the 2028 fiscal year, Tan said, Broadcom believes AI chip revenue growth to again double to $230 billion, and the company is on target to produce over $30 in earnings per share. The LSEG consensus for fiscal 2028 adjusted earnings per share was $25.86.
Semiconductor revenue more than tripled to $16.7 billion, exceeding the $15.2 billion average estimate, according to StreetAccount. Broadcom said it generated $8.75 billion from infrastructure software, less than the $8.82 billion consensus among analysts polled by StreetAccount.
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