Broadcom’s AI semiconductor revenue jumped 143% year-over-year to $10.8 billion in Q2, with $16 billion expected next quarter.
Broadcom reported a 143% year-over-year increase in AI semiconductor revenue to $10.8 billion in the second quarter of fiscal 2026. This follows a 106% rise in the prior quarter and aligns with soaring demand for custom ASICs in AI data centers.
The company holds an estimated 70% market share in custom AI chips, outpacing competitors like Marvell Technology. Broadcom projects AI revenue to exceed $16 billion this quarter and reach $100 billion by fiscal 2027, reflecting accelerating adoption of specialized hardware.
Custom ASICs, designed for specific AI workloads, deliver higher performance and efficiency than general-purpose chips, driving their rapid growth in data center deployments.