AI Index / Broadcom Inc.
Broadcom Inc. (AVGO)
Main revenue sources: 1) AI Semiconductors (custom AI accelerators/XPUs and Ethernet AI networking: Tomahawk/Jericho) – directly AI-driven; 2) Non‑AI Semiconductors (broadband, server storage, wireless, enterprise networking, industrial) – limited AI impact; 3) Infrastructure Software (VMware Cloud Foundation, subscriptions/support) – primarily non‑AI, though it can host AI workloads. Q3: $9.2B semis with $5.2B AI; software $6.8B. AI is the primary growth engine and ~one‑third of total revenue, rising into Q4 and FY26, but software remains a large non‑AI base.
Loading...
Now revenue growth was driven by better than expected strength in AI semiconductors, and our continued growth in VMware. Q3 semiconductor revenue was $9.2 billion as year on year growth accelerated to 26% year on year. And this accelerated growth was driven by AI Semiconductor revenue of $5.2 billion, which was up 63% year on year and extend the trajectory of robust growth to 10 consecutive quarters.
- Hock Tan
Similar Companies in the Swift AI Index
Quotes from broadcom Executives About Artificial Intelligence and Generative AI
Demand for custom AI accelerators from our three customers continued to grow as each of them journeys at their own pace towards compute self-sufficiency. And progressively, we continue to gain share with these customers.
- Hock Tan
Turning to AI networking. Demand continued to be strong. Because networking is becoming critical as LLMs continue to evolve in intelligence and compute classes have to grow bigger.
- Hock Tan
We know the biggest challenge to deploying larger clusters of compute for generative AI will be in networking. And for the past twenty years, Broadcom has developed for Ethernet, networking is entirely applicable to the challenges of scale up, scale out, and scale across in generative AI.
- Hock Tan
And turning to our forecast as I mentioned earlier, we continue to make steady progress in growing our AI revenue. For Q4, 2025, we forecast AI semiconductor revenue to be approximately $6.2 billion, up 66% year on year.
- Hock Tan
I think it's both, Ross. But to a large extent, it's the fourth quarter customer that we now add on to our roster. Which we will ship pretty strongly in 2026, I should say. So combination of increasing the volumes from existing three customers and we moved through that very progressively and steadily.
- Hock Tan
Demand for custom AI accelerators from our three customers continued to grow as each of them journeys at their own pace towards compute self-sufficiency.
- Hock Tan
In contrast, in Q4, driven by seasonality, we forecast non AI semiconductor revenue to grow low double digits sequentially to approximately $4.6 billion.
- Hock Tan
Ben, you are definitely greedy and definitely overthinking this for me. Thank you. But yeah. You know, that's if asking for qualify, subjective qualification. And, frankly, I I don't wanna give that. I'm not comfortable giving that because sometimes we stumble into production in fairly in time frames that are fairly unexpected surprisingly. Equally, it could get delayed.
- Hock Tan
It's both. And in fact, as the ratio as the as we create more and more experience among four guys, the networking we get the networking with these four guys, but now the mix of networking from outside these four guys will now be a smaller be diluted, be a smaller share.
- Hock Tan