Broadcom lifts AI revenue outlook despite soft Q4 guidance and muted stock
Broadcom reported fiscal Q3 2026 revenue of $29.59 billion, with AI semiconductor revenue reaching $16.7 billion, up 221% year over year. The company raised its full-year AI revenue forecast to $58 billion from $56 billion and projected $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Despite the growth, its Q4 revenue guidance of about $34.8 billion was slightly below some analyst estimates, and shares traded around $353, roughly 29% below their 52-week high.
Broadcom's fiscal Q3 2026 results showed total revenue of $29.59 billion, while chips designed for artificial intelligence contributed $16.7 billion—more than triple the prior-year level. Management lifted its current-year AI sales target to $58 billion from $56 billion and set longer-range goals of $115 billion for 2027 and $230 billion for 2028.
The quarter's AI figure exceeded $16 billion, and the Q4 outlook implies roughly $21.7 billion in AI-related sales, a 236% annual rise. Still, the $34.8 billion Q4 revenue forecast missed some analyst expectations. Shares near $353 remain about 29% under the $495 peak, even as earnings have climbed sharply.
Broadcom's raised AI outlook could shape how quickly data centers, cloud services, and advanced computing tools expand. Investors may see renewed confidence in custom-chip demand, while suppliers, engineers, and energy providers could face pressure to keep pace. If growth materializes, more businesses and consumers might gain access to cheaper or more capable AI services, though supply bottlenecks and concentrated customers may also create risks for workers and smaller competitors.