AI Index / Broadcom Inc.
Broadcom Inc. (AVGO)
Revenue sources: 1) Semiconductor Solutions ($37B FY25): AI custom accelerators (XPUs) and AI networking (Tomahawk 6 Ethernet switches, 1.6T DSPs, optics, PCIe) plus emerging system/rack sales—AI contributes directly (FY25 AI $20B; Q4 AI $6.5B; $73B AI backlog/18 months). Non-AI semis (wireless, broadband, others) have minimal AI. 2) Infrastructure Software ($27B FY25): VMware Cloud Foundation subscriptions/renewals—largely non-AI, though it can host AI workloads. Net: AI is a major, rapidly growing driver but not yet the majority of total revenue.
Loading...
In our fiscal 2025, consolidated revenue grew 24% year over year, to a record $64 billion, driven by AI semiconductors and VMware. AI revenue grew 65% year over year to $20 billion, driving the semiconductor revenue for this company to a record $37 billion for the year.
- Hock Tan
Similar Companies in the Swift AI Index
Quotes from broadcom Executives About Artificial Intelligence and Generative AI
This robust growth was driven by AI semiconductor revenue of $6.5 billion, which was up 74% year on year. This represents a growth trajectory exceeding 10 times over the eleven quarters we have reported this line of business.
- Hock Tan
Our customer accelerated business more than doubled year over year as we see our customers increase adoption of XPUs, as we call those customer accelerators, in training their LLMs and monetizing their platforms through inferencing APIs and applications.
- Hock Tan
The scale at which we see this happening could be significant. As you are aware, last quarter, Q3 2025, we received a $10 billion order to sell the latest TPU ironwood racks to Anthropic.
- Hock Tan
Our current order backlog for AI switches exceeds $10 billion as our latest 102 terabyte terabit per second Tomahawk six switch, the first and only one of its capability out there, continues to book at record rates.
- Hock Tan
We have also secured record orders on DSPs, optical components like lasers, and PCI Express switches to be deployed in AI data centers.
- Hock Tan
Total AI revenue backlog over the next eighteen months exceeds $73 billion today, which reflects the strong demand for AI solutions.
- Hock Tan
In Q1 fiscal 2026, we expect our AI revenue to double year on year to $8.2 billion.
- Hock Tan
Directionally, we expect AI revenue to continue to accelerate and drive most of our growth.
- Hock Tan
To answer your first question, what we said is correct that as of now, we have $73 billion of backlog in place, account of XPU switches, DSPs, lasers, for AI data centers that we anticipate shipping over the next eighteen months.
- Hock Tan
This concept of customer tooling is an overblown hypothesis which frankly I do not think will happen.
- Hock Tan
No. That's great. But as far as what is the future as XPU is your broader question. My answer to you is do not follow what you hear out there as gospel. It's a trajectory. It's a multiyear journey.
- Hock Tan
On the PowerShell and the transformers and the gas turbines. If you just look at the rack, the systems on AI, we probably have a good handle on where the bottlenecks are because sometimes we are part of the bottlenecks.
- Hock Tan
So I would have plenty of versions to deal with. I do not need to create any more version. We got plenty of different content out there. Just on the basis of creating these customer accelerators.
- Hock Tan