Broadcom published its financial results for the third quarter of fiscal year 2026. The results beat even the most optimistic expectations on Wall Street: Broadcom has firmly established itself as a key beneficiary of the artificial intelligence boom on par with Nvidia. 

Financial performance Q3 2026: 

Total revenue: $29.6 billion (+86% year over year)

AI segment: $16.7 billion (+221% year over year) — now 70% of the company’s total semiconductor revenue

Free cash flow: $13.7 billion (46% of total revenue)

Net profit (Non-GAAP EPS): $3.32 per share versus guidance of $3.21

What is driving Broadcom’s growth?

1. Custom AI accelerators (XPU / ASIC)

While most companies are buying generic GPUs, the giants of the IT industry are creating their own narrowly specialized chips together with Broadcom.

Mass shipments of Ironwood TPU v7 chips to Google and Anthropic have been completed.

The first-generation Jalapeno specialized accelerators for OpenAI have begun shipping.

Custom solutions are being developed for Meta and ByteDance.

2. Networking infrastructure for data centers

To connect tens of thousands of AI chips into a single supercomputing network, you need ultra-fast switches and optics. Broadcom’s networking lines (Tomahawk and Jericho) remain the gold standard for data transmission with ultra-low latency.

3. Integration of VMware and enterprise AI

The software division brought in $8.8 billion (+29%). The flagship was the VMware Private AI Cloud project, which allows large businesses to deploy on-premises AI models on their own infrastructure while preserving the confidentiality of corporate data.

Forecast through 2028

Broadcom CEO Hock Tan outlined long-term revenue targets for AI chips only:

FY2026: $58 billion

FY2027: $115 billion (up more than the previous period)

FY2028: $230 billion

The company’s strategy shows that the future of AI infrastructure is not just about discrete GPUs, but also about personalized chips and ultra-fast networks.