Broadcom reported stronger-than-expected earnings, forecasting AI-related revenue to double in the February 2026 quarter, signaling robust demand for AI infrastructure. The milestone underscores accelerating adoption of AI chips across cloud and enterprise markets.
- Broadcom's non-GAAP EPS of $10.92 beat estimates of $10.35
- Revenue reached $11.1 billion, up 21% YoY
- AI revenue forecast to double in February 2026 quarter to over $1.8 billion
- AI revenue now accounts for more than 30% of total semiconductor revenue
- AVGO stock rose 7% in after-hours trading; NVDA, AMD, and INTC also gained
- ^VIX dropped 5.8%, signaling reduced market volatility
Broadcom Inc. (AVGO) delivered a standout performance in its latest earnings report, exceeding market expectations across key metrics. The company reported non-GAAP earnings per share of $10.92, surpassing the consensus estimate of $10.35, while revenue reached $11.1 billion, up 21% year-over-year. A pivotal component of the beat came from AI-driven segments, where Broadcom projected AI-related revenue to double sequentially in the February 2026 quarter, a clear indicator of sustained demand for high-performance computing infrastructure. The company cited strong traction in data center and cloud acceleration, driven by demand for advanced networking and silicon solutions used in AI workloads. Broadcom’s role in supplying critical components for Google’s Tensor Processing Units (TPUs) has positioned it as a key enabler in the AI supply chain, with AI revenue now representing over 30% of total semiconductor revenue. The guidance implies that AI revenue could exceed $1.8 billion in the upcoming quarter, up from $900 million in the prior period. Market reaction was immediate: AVGO stock surged 7% in after-hours trading, while peers in the semiconductor and AI ecosystem saw gains. NVIDIA (NVDA), AMD (AMD), and Intel (INTC) all registered positive moves, with NVDA up 4.5% as investors priced in broader demand for AI chips. The broader tech sector also responded, with the Nasdaq Composite gaining 1.2% following the earnings release. The rally reflects confidence in the durability of AI-driven spending, especially among hyperscalers and enterprise adopters. Energy markets also reacted, with crude oil (CL=F) dipping slightly as market sentiment shifted toward technology growth, while the CBOE Volatility Index (^VIX) fell 5.8%, indicating reduced risk aversion.