Quick Read – Broadcom’s AI semiconductor bookings topped $30 billion as management guided next-quarter AI revenue to $16 billion, over 200% year-over-year growth. – Unlike NVDA’s merchant GPUs, AVGO builds custom ASICs that let hyperscalers sidestep $40,000-per-chip costs as AI…
pex shifts toward custom silicon. – Free cash flow hit $10 billion last quarter at a 46% margin, backed by 15 straight years of annual dividend increases. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn’t make the cut. Grab the names FREE today
I keep buying Broadcom (NASDAQ:AVGO) because every hyperscaler racing to build AI infrastructure eventually walks through Hock Tan’s showroom, and I want to own the toll booth. That is the reason my finger hovers over the buy button again this week, with the stock trading at $381.92 heading into another mega-cap earnings cycle. The One Powerful Reason: Custom Silicon Is Eating the AI Buildout Broadcom’s AI semiconductor revenue climbed from $5.20 billion in Q3 FY2025 to $10.80 billion last quarter, up 143% year-over-year.
Management guided Q3 FY2026 AI revenue to $16.0 billion, growth over 200%. Bookings for AI semiconductors reached over $30 billion against $10.8 billion shipped. Hock Tan told the Street plainly: “Demand for XPUs and networking is simply insatiable.” That is the toll booth I want to own.