Broadcom: AI chip revenue up 221% YoY, eyes $230B by fiscal 2028
firstadopter · x · 2026-09-03
Key takeaways from Broadcom's earnings call
- Results: Q3 AI semiconductor revenue grew 221% YoY and 54% sequentially, with six XPU customers accelerating custom accelerator adoption.
- Anthropic: plans to deploy another 5GW of TPU v8 in 2027 plus 10GW incremental in 2028, on track to become Broadcom's largest XPU customer in 2027.
- OpenAI: first-gen Jalapeno accelerator shipped in Q3, outperforming Grace Blackwell for inference; 1.3GW planned for 2027 with line of sight to 5GW+ in 2028, making it the #2 customer.
- Google TPUs: TPU v8 shipping ahead of the MediaTek version, comparable to or surpassing Vera Rubin; multi-tens-of-billions in annual TPU revenue expected for years.
- Guidance: AI semiconductor revenue set to double to $115B in fiscal 2027 and again to $230B in 2028, with supply secured; EPS target above $30 by fiscal 2028.
- Take: Broadcom sees OpenAI and Anthropic evolving into hyperscaler-like first parties running their own data centers. Author notes 2027 guidance disappointed vs buy-side expectations, but the 2028 outlook is strong — though two-year-out guides deserve a discount.
Related event: Broadcom's AI chip revenue surges 221%, targeting $230B by FY2028(7 posts)→
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