Broadcom's AI Chip Revenue Grew 221% Last Quarter — and Its Own Forecast Says That Accelerates
Broadcom beat Wall Street estimates on both revenue and profit. Shares fell anyway, and none of the coverage we found fully explains why.
Meridians Money Desk
Published 7 September 2026 · Updated 7 September 2026 · 3 min read
BusinessThe short answer
- Broadcom reported fiscal Q3 2026 revenue of $29.6 billion, up 86% year over year, in results released September 2, 2026 — beating analyst estimates of about $29.4 billion.
- AI semiconductor revenue reached $16.7 billion, up 221% year over year and 54% from the prior quarter.
- For Q4, Broadcom guided to roughly $34.8 billion in total revenue, implying 93% year-over-year growth, with AI semiconductor revenue projected at $21.7 billion.
- Despite beating estimates on both revenue and non-GAAP earnings per share, Broadcom shares fell as much as 6% in after-hours trading before paring the decline to about 3.5%.
Broadcom's fiscal third-quarter results, released September 2, 2026, beat Wall Street on every headline number. Revenue came in at $29.6 billion, up 86% from a year earlier and above the roughly $29.4 billion analysts expected. Non-GAAP earnings per share hit $3.32, ahead of the $3.24 estimate. Shares fell anyway.
The quarter, in numbers
- Total revenue: $29.6 billion, up 86% year over year
- AI semiconductor revenue: $16.7 billion, up 221% year over year and 54% quarter over quarter
- Non-GAAP EPS: $3.32, versus a $3.24 estimate
- Semiconductor Solutions segment revenue up 127% year over year
“Demand for our custom AI accelerators and networking continues to be very strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter. In Q4 the momentum continues, and we expect AI semiconductor revenue to accelerate to $21.7 billion, up 236% year-over-year.”
Guidance points higher — the stock didn't follow
Broadcom's own forecast calls for acceleration, not a slowdown: about $34.8 billion in Q4 revenue, 93% higher than a year ago, with non-GAAP operating margin guided at roughly 66% of revenue. Even so, shares dropped as much as 6% in after-hours trading before the decline narrowed to about 3.5%.
Sources
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