Broadcom’s Q4 Earnings Surpass Expectations Amid Custom Chip Surge
Broadcom has reported strong results for its fourth quarter, exceeding both revenue and profit expectations. The company, known for its custom chips, is experiencing significant growth, particularly in the artificial intelligence (AI) sector.
Broadcom’s Q4 Earnings Highlights
- Q4 demonstrated a remarkable performance, surpassing analysts’ expectations.
- Broadcom forecasts its AI semiconductor revenue will reach $8.2 billion in Q1 2026, a 100% increase from the previous year.
- The company’s Q1 guidance is 20% higher than Wall Street consensus estimates.
- Quarterly dividend raised to $0.65 from $0.59.
Key Partnerships and Orders
During a recent investor call, CEO Hock Tan disclosed significant developments. The previously mentioned $10 billion customer is Anthropic, the creator of the Claude chatbot. In addition, Broadcom secured an extra $11 billion order from Anthropic.
Overall, Broadcom currently holds a backlog of $73 billion, projected to be realized over the next 18 months.
Market Position and Competitors
Broadcom’s value has surged since mid-November, outperforming major competitors in the AI chip market, including Nvidia and Advanced Micro Devices.
Bank of America has noted that Broadcom’s forward price-to-earnings ratio has reached historic highs compared to Nvidia. This suggests that investors anticipate a growing share for Broadcom in the AI market.
Innovative Collaborations
In recent months, Broadcom has also formed a partnership with OpenAI, committing to deliver 10 gigawatts of AI accelerators starting in 2024. Google’s Gemini 3 model, which has garnered widespread acclaim, was developed using custom TPUs co-designed with Broadcom.
These developments position Broadcom as a leading innovator in the custom chip industry, particularly within the rapidly evolving AI sector.
