Broadcom Revenue Surges 86% on AI Chip Demand as Intel Shows Recovery

Broadcom reported consolidated revenue of $29.6 billion for fiscal Q3 2026, marking an 86% increase compared to the previous year. The company's AI semiconductor business served as the primary driver, generating $16.7 billion in revenue, a 221% jump year over year.

AI hardware now accounts for 56% of Broadcom's total revenue. The company reported non-GAAP operating income of $20.1 billion, up 92% from the prior year, with free cash flow reaching $13.7 billion. Management expects further growth, providing Q4 fiscal 2026 revenue guidance of approximately $34.8 billion.

Broadcom raised its full-year fiscal 2026 AI revenue forecast to $58 billion. Looking further ahead, the company projects AI revenue of approximately $115 billion in fiscal 2027 and approximately $230 billion in fiscal 2028. These projections are supported by supply agreements with companies including Google, Meta, OpenAI, and Anthropic.

Anthropic is projected to become the largest customer for Broadcom’s custom AI accelerators, or XPUs, by 2027. These chips are designed for specific AI workloads, fostering long-term relationships between the chipmaker and its clients.

Intel also reported growth, with Q2 2026 revenue climbing 25% to $16.1 billion. Its Data Center and AI segment grew 59% to $6.3 billion, while non-GAAP gross margins reached approximately 41.8%. The company is currently working through a turnaround effort under CEO Lip-Bu Tan, though it continues to face execution risks in a competitive market.

Broadcom’s AI segment revenue alone surpassed Intel’s total quarterly revenue. While Broadcom has secured multi-year contracts with major AI labs, its reliance on a small group of hyperscalers means any reduction in their spending could impact future results. Traders are watching to see if Broadcom meets its Q4 guidance and if Intel can maintain its margin improvements in upcoming quarters.