Broadcom beats Q3 estimates but Q4 revenue forecast disappoints
Broadcom reported adjusted earnings of $3.32 per share on revenue of $29.59 billion, both exceeding analyst expectations. The company highlighted growing business with AI labs Anthropic and OpenAI, with revenue surging 86% year over year. However, its fourth-quarter revenue forecast of $34.8 billion came in below the $35.03 billion consensus.
Broadcom’s fiscal third-quarter results showed revenue nearly doubling year over year, with net income more than tripling to $13.09 billion. The company’s custom chip work for major AI players—including Google, Meta, and OpenAI—has driven its market value to roughly $1.8 trillion, though its stock has underperformed the S&P 500 this year. CEO Hock Tan highlighted accelerated shipments of Google’s Ironwood TPUs to Anthropic and TPU 8i chips to Google, plus continued deliveries of OpenAI’s Jalapeno chip and Meta’s MTIA accelerator.
The disappointing fourth-quarter revenue forecast of $34.8 billion versus the $35.03 billion consensus suggests near-term headwinds, even as long-range earnings guidance beat expectations. Broadcom’s reliance on a handful of hyperscaler customers remains a key risk, but its expanding relationships with AI labs like Anthropic and OpenAI signal sustained demand for custom silicon.
Broadcom’s results could influence investor sentiment across the AI supply chain, as its forecast shortfall may signal that even leading chipmakers face uneven demand. Companies relying on AI infrastructure—from cloud providers to startups—may see pricing or availability shifts if Broadcom’s guidance reflects broader capacity constraints. Consumers could indirectly feel effects through the pace of AI product rollouts, though near-term impacts are likely limited to financial markets and corporate planning rather than everyday life.