Quick Read – Broadcom (AVGO) reported AI semiconductor revenue of $8.4B in fiscal Q1 2026, growing 106% year-on-year, with Q2 guided to $10.7B and management targeting AI chip revenue exceeding $100B in 2027; secured customers include Google, Anthropic, Meta, and OpenAI…
ploying across multiple gigawatts. – Broadcom is capturing the dominant share of custom AI silicon for frontier model developers while maintaining leading-edge manufacturing capacity through 2028 and returning aggressive cash to shareholders through buybacks and dividend growth. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Broadcom wasn’t one of them. Get them here FREE
I keep hitting the buy button on Broadcom (NASDAQ:AVGO) because I have never watched a company sit this squarely on the single biggest capital cycle of my lifetime while acting like a cash-return machine for shareholders. Custom AI silicon for the handful of companies building frontier models, paired with a software business that prints money, paired with management that hands the cash back. I am long.
AI is a major draw The number that pulled me in is the AI line. AI semiconductor revenue grew 106% year-on-year to $8.4 billion in fiscal Q1 2026, and management guided Q2 AI revenue to $10.7 billion. Hock Tan said it plainly on the call: “we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027.