Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom Reported third quarter revenues won expectations and provided robust guidance this quarter. The shares rose in extended trading after the company said it had secured $10 billion orders from a new client for custom chips.
Here’s how the chipmakers estimated the LSEG consensus:
Earnings per share: $1.69 adjusted vs. $1.65 forecast: $159.6 billion vs. $15.83 billion
Broadcom said Wall Street analysts are forecasting $17.4 billion in fourth quarter revenues, exceeding the expected $17.02 billion. Revenue for the third quarter increased 22% per year.
The company reported net profit of $4.14 billion, or 85 cents per share, after recording a net loss of $1.888 billion, or 40 cents per share a year ago. The losses in the same period last year were due to a one-time tax provision of $4.5 billion from transferring intellectual property to the United States.
Broadcom develops custom chips Google Other cloud companies are also adding to the networking components and software needed to tie together thousands of artificial intelligence chips.
Broadcom shares have grown 32% per year as of Thursday’s closing, almost doubled over the past 12 months, with the company’s market capitalization exceeding $1.4 trillion.
Investors are optimistic that the company’s custom processors could threaten over the next few years nvidia’s The dominant market share of AI chips. In March, Broadcom CEO Hock Tan said the company is developing new AI chips with three large cloud customers, and said he expects AI growth to continue until next year.
Tan said in a call with the analyst that Broadcom has secured $10 billion orders with orders for custom AI chips calling XPUs from its fourth customer.
“One of these outlooks was to announce the production order to Broadcom, which marked them as qualified customers for XPUs,” Tan said. He added that the large orders have increased Broadcom’s forecast for AI revenues for next year.
“We will ship pretty strong starting in 2026,” Tan said.
Tan attributes its third quarter revenue growth to custom AI accelerators, networking parts and VMware software. AI revenue rose to $5.2 billion to 63% over the period, beating the company’s previous forecast of $5.1 billion.
Tan said he expects AI revenue to reach $6.2 billion this quarter.
The company said chip sales, reported as semiconductor solutions, rose 57% to $9.17 billion. Revenue for Broadcom’s infrastructure software business, including VMware, rose 43% to $67.9 billion.
