Broadcom reported $8.4 billion in AI revenue for Q1 FY2026, a 106% increase year-over-year. CEO Hock Tan says bookings have topped $30 billion, with long-term contracts providing visibility out to 2028.
The company expects AI revenue of $56 billion for FY2026, a 180% jump, with quarterly guidance hitting $16 billion by Q3. Broadcom designs custom AI accelerators, or XPUs, for hyperscale customers like Google, Meta, Anthropic, and OpenAI, which is partnering on chips that start production in 2026. The company also supplies its Jericho and Memory fabric networking technologies for AI data centers.
Risks include dependence on TSMC’s advanced fabrication and possible in-house chips from Amazon, Google, and Microsoft, but demand remains robust.