Broadcom Achieves 221% Growth in AI Chip Revenues Reaching 16.7 Billion

US semiconductor company Broadcom announced record results for the third quarter of 2026, as its revenues from AI chips rose by 221% year-on-year to reach $16.7 billion in the period ending in August 2026.

Broadcom estimated its AI revenue for fiscal year 2026 at approximately $58 billion, and projected more ambitious figures for coming years at $115 billion in 2027 and $230 billion in 2028, reflecting its confidence in the growth trajectory of this sector.

However, the market received the results with some disappointment, as Broadcom's stock declined after the forecast fell short of analysts' expectations, according to a Bloomberg report published on September 2, 2026.

Broadcom continues to expand its custom AI chip portfolio and has partnered with OpenAI to develop the specialized Jalapeno chip, placing the company in direct competition with NVIDIA in the custom processor market. The role of custom chips is rising as a strategic alternative for major companies in building their AI infrastructure.

What do these terms mean?

Custom Chips: Processors specifically designed for specialized tasks such as artificial intelligence, unlike general-purpose processors that perform multiple tasks, making them faster and more efficient in their designated functions.

Semiconductors: Electronic materials used to manufacture chips that power all our devices, from smartphones to data centers, serving as the backbone of the modern technology industry.

Year-over-Year (YoY) Growth: Comparing a company's performance to the same period in the previous year, which is the standard metric for measuring real growth away from seasonal fluctuations.