Broadcom Inc.

Record quarter; AI-driven outperformance - Q3 FY26 revenue: $29.6B (+86% YoY); operating income: $20.1B (+92% YoY) with record operating margin ~67.9%. - Free cash flow: $13.7B (46% of revenue); gross margin ~75%, down 210 bps sequentially due to heavier AI semiconductor mix. - AI semiconductor revenue: $16.7B (+221% YoY, +54% sequentially). XPU shipments: up 3.5x YoY; 73% of AI revenue.

XPU ramp details + near-term AI growth outlook - Ironwood TPU v7 shipped in high volume to Anthropic and Google; TPU v8i production shipments began for Google (designed for inference; higher memory/bandwidth). - Jalapeno shipped for OpenAI (claims: outperforms Grace Blackwell GPU for inference). - Meta MTIA accelerator: expects continued production shipments (inference + recommendation at scale). - Q4 FY26 guidance: consolidated revenue $34.8B (+93% YoY); AI revenue $21.7B (+236% YoY); operating margin ~66% (impacted by AI mix but leverage offsets). - FY26 AI revenue forecast: ~$58B (+186% YoY) (management says Q4 AI revenue drives this).

Major multi-year forecast (demand and supply “carefully conservative” assumptions) - AI semiconductor revenue outlook: - FY27: ~$115B (management expects to double again; “demand exceeds outlook” but supply may constrain). - FY28: ~$230B (another doubling; they state supply is expected to meet this based on visibility into leading-edge wafers/substrates/HBM and data center readiness). - Management emphasizes that what could change is whether they can secure enough leading-edge supply *and* whether customers can deploy the capacity (racks/sites) on time—i.e., deployment timing vs chip shipment.