Broadcom reported a massive beat-and-raise quarter driven by 'insatiable' AI demand, with AI semiconductor revenue hitting $10.8 billion. Management provided an exceptionally bullish outlook, forecasting AI revenue to double in H2 2026 to $56 billion and exceed $100 billion in FY2027, underpinned by multi-gigawatt commitments from customers like Google, Anthropic, OpenAI, and Meta. AI semiconductor revenue grew 143% YoY to a record $10.8B in Q2 FY26, representing ~49% of total revenue, with bookings exceeding $30B.
Broadcom reported a massive beat-and-raise quarter driven by 'insatiable' AI demand, with AI semiconductor revenue hitting $10.8 billion. Management provided an exceptionally bullish outlook, forecasting AI revenue to double in H2 2026 to $56 billion and exceed $100 billion in FY2027, underpinned by multi-gigawatt commitments from customers like Google, Anthropic, OpenAI, and Meta. AI semiconductor revenue grew 143% YoY to a record $10.8B in Q2 FY26, representing ~49% of total revenue, with bookings exceeding $30B.
Management was emphatic and confident, using language like “simply insatiable,” reiterating >$100B AI revenue for 2027, and saying 2027 is on track “if not stronger.”
Guidance · revenue to $29.4B
Guidance · revenue to $29.4B
Broadcom's own capex remains modest, but capacity is being scaled aggressively through customer gigawatt commitments and the new AI XPV platform with Apollo, Blackstone, and other investors to deploy over 20 gigawatts by 2028. Management also noted they are securing supply for…
Management described AI demand as “simply insatiable,” with bookings far outpacing shipments and growth expected to double in the second half of fiscal 2026. They highlighted XPU and networking leadership, multi-customer gigawatt commitments, and visibility extending to 2028, framing AI as a durable and accelerating growth driver.
AI bookings were nearly 3x shipped revenue in Q2. Management was emphatic and confident, using language like “simply insatiable,” reiterating >$100B AI revenue for 2027, and saying 2027 is on track “if not stronger.”
Broadcom's own capex remains modest, but capacity is being scaled aggressively through customer gigawatt commitments and the new AI XPV platform with Apollo, Blackstone, and other investors to deploy over 20 gigawatts by 2028. Management also noted they are securing supply for 2026-2027 and already working on 2028-2029, with inventory intentionally built ahead of stronger second-half shipments.
Management was emphatic and confident, using language like “simply insatiable,” reiterating >$100B AI revenue for 2027, and saying 2027 is on track “if not stronger.”
“During the quarter, bookings for AI semiconductors were over $30 billion, against the $10.8 billion we shipped.”
“To deliver this vision, we are creating the AI XPV platform with Apollo and Blackstone and other leading investors to deploy more than 20 gigawatts of compute capacity through 2028.”
“Our days of inventory on hand were 86 days in Q2 compared to 68 days in Q1 in anticipation of accelerating AI semiconductor growth in the second half of the year.”
“Now turning to non-AI semiconductors. Q2 revenue of $4.2 billion was up 6% year on year. Bookings during the same period exceeded $6 billion, which is a clear indication we are on the path towards a full cyclical recovery.”
“For our other two customers, we expect shipments to begin late 2026 and accelerate into 2027.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Gross margin | FY2026 Q3 | 74% | 74% | GUIDED |
| Op margin | FY2026 Q3 | 67% | 67% | GUIDED |
| Revenue | FY2026 Q3 | $29.4B | $29.4B | GUIDED |
| RevenueSEMICONDUCTOR | FY2026 Q3 | $20.5B | $20.5B | GUIDED |
| RevenueAI | FY2026 | $56B | $56B | GUIDED |
| RevenueSOFTWARE | FY2026 Q3 | $8.9B | $8.9B | GUIDED |
| RevenueAI | FY2026 Q3 | $16B | $16B | GUIDED |
| RevenueAI | FY2027 | $100B | $100B | MAINTAINED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q1 | Revenue | FY2026 Q2 | $22B | $22.187B | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $14.8B | $15B | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $10.7B | $10.8B | Met / beat |
| FY2025 Q4 | Gross margin | FY2026 Q1 | 77% | 65.57% | Missed |
| FY2025 Q4 | Op margin | FY2026 Q1 | 67% | 44.95% | Missed |
| FY2025 Q4 | Revenue | FY2026 Q1 | $8.2B | $8.4B | Met / beat |
| FY2025 Q4 | Revenue | FY2026 Q1 | $19.1B | $19.311B | Met / beat |
Meta is a significant new customer with a 3-gigawatt commitment through 2028, with the first 1-gigawatt order already placing, indicating a strong and immediate ramp for Broadcom's custom silicon.
“For META, in April, we announced a partnership to deliver multiple generations of MTIA XPUs. And under this agreement, we expect to deploy 3 gigawatts through the end of 2028. The initial order for one gigawatt, which includes XPUs and our”
… of over 1 gigawatts. In April, we entered into an agreement to enable Entropic to access another 5 gigawatts of next generation TPU based compute beginning in 2027. For OpenAI, we have delivered silicon and we are on track for production late 2026. We have a contractual commitment to deploy 1.3 gigawatts in 2027 as part of the larger 10 gigawatts that by 2029 agreement we announced last year. For META, in April, we announced a partnership to deliver multiple generations of MTIA XPUs. And under this agreement, we expect to deploy 3 gigawatts through the end of 2028. The initial order for one gigawatt, which includes XPUs and our networking, has been received and will start delivery in the second half of 2027. For our other two customers, we expect shipments to begin late 2026 and accelerate into 2027. To date, we have received purchase orders totaling $6 billion. While we have significant IP and execution leadership in XPUs, networking is key to building scalable XPU and GPU clusters. And here in networking, we have at least one generation of technology and product leadership. For scale-up within RACs, We enable direct attached copper based on an industry-leading 200G and …
Broadcom has secured a multi-generational, substantial supply agreement with Google for TPUs, solidifying its position as a key AI silicon partner and extending its revenue visibility far into the future.
“with Google, we announced in April that we entered into a long-term agreement to develop and supply multiple generations of TPUs and AI networking.”
… year. For the full year 2026, we expect to achieve AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025. Now, we expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion. We expect AI semiconductor revenue growth to continue in fiscal 2028 based on the following initiatives we have with our six core customers. As you are aware, with Google, we announced in April that we entered into a long-term agreement to develop and supply multiple generations of TPUs and AI networking. Our relationship continues to be strategic and very substantial as we continue to deliver vastly superior technology and execution compared to other alternatives. This ability to provide differentiated value to Google ensures that our business will sustain and grow for the foreseeable future. For Entropic, as you know, for 2026, we are providing access to Broadcom TPU based compute of over 1 gigawatts. In April, we entered into an agreement to enable Entropic to access another 5 gigawatts of next generation TPU based compute beginning in 2027. For OpenAI, we have delivered silicon and we are on track …
OpenAI's commitment to 10 gigawatts by 2029 is a major driver of Broadcom's long-term growth, with production starting late 2026 and a contractual deployment of 1.3 gigawatts in 2027.
… alternatives. This ability to provide differentiated value to Google ensures that our business will sustain and grow for the foreseeable future. For Entropic, as you know, for 2026, we are providing access to Broadcom TPU based compute of over 1 gigawatts. In April, we entered into an agreement to enable Entropic to access another 5 gigawatts of next generation TPU based compute beginning in 2027. For OpenAI, we have delivered silicon and we are on track for production late 2026. We have a contractual commitment to deploy 1.3 gigawatts in 2027 as part of the larger 10 gigawatts that by 2029 agreement we announced last year. For META, in April, we announced a partnership to deliver multiple generations of MTIA XPUs. And under this agreement, we expect to deploy 3 gigawatts through the end of 2028. The initial order for one gigawatt, which includes XPUs and our networking, has been received and will start delivery in the second half of 2027. For our other two customers, we expect shipments to begin late 2026 and accelerate into 2027. To date, we have received purchase orders totaling $6 billion. While we have significant IP and execution leadership in XPUs, networking is key …
Broadcom is shifting to a co-investment model, creating the AI XPV platform with Apollo/Blackstone to fund and deploy over 20 gigawatts of compute, effectively financing customer demand with outside capital. — This decouples Broadcom's revenue growth from the front-line AI labs' capital budgets, creating a new, fully-funded demand pool and enabling them to scale customers like Anthropic faster than internal cash flows would allow.
… we entered into a long-term agreement to develop and supply multiple generations of TPUs and AI networking. Our relationship continues to be strategic and very substantial as we continue to deliver vastly superior technology and execution compared to other alternatives. This ability to provide differentiated value to Google ensures that our business will sustain and grow for the foreseeable future. For Entropic, as you know, for 2026, we are providing access to Broadcom TPU based compute of over 1 gigawatts. In April, we entered into an agreement to enable Entropic to access another 5 gigawatts of next generation TPU based compute beginning in 2027. For OpenAI, we have delivered silicon and we are on track for production late 2026. We have a contractual commitment to deploy 1.3 gigawatts in 2027 as part of the larger 10 gigawatts that by 2029 agreement we announced last year. For META, in April, we announced a partnership to deliver multiple generations of MTIA XPUs. And under this agreement, we expect to deploy 3 gigawatts through the end of 2028. The initial order for one gigawatt, which includes XPUs and our networking, has been received and will start delivery in the second …
Partnership with Apollo and Blackstone to fund the AI XPV platform is a novel strategy to finance and deploy over 20 gigawatts of compute, positioning these investors as key enablers of AI infrastructure growth and creating a new demand channel for Broadcom's chips.
… leader with our Jericho 3 and Jericho 4 fabric solutions and enabling the world's largest deployments and multiple hyperscalers. Our strategic vision is to bring together Broadcom's leading technology and investor partners with the strongest balance sheets to deliver at scale sufficient compute capacity at the lowest cost and power for the leading AI frontier labs, including entropic and open AI. To deliver this vision, we are creating the AI XPV platform with Apollo and Blackstone and other leading investors to deploy more than 20 gigawatts of compute capacity through 2028. The first trench of this platform valued at $35 billion is in fact currently being launched by Apollo. Now turning to non-AI semiconductors. Q2 revenue of $4.2 billion was up 6% year on year. Bookings during the same period exceeded $6 billion, which is a clear indication we are on the path towards a full cyclical recovery. Broadband, server storage, and enterprise networking together were up, partially offset by a seasonal decline in wireless. Consistent with this trend in Q3, we forecast non-AI semiconductor revenue to be approximately $4.5 billion, up 12% from a year ago. In summary, we expect Q3 …
As a partner in the AI XPV platform, Blackstone is part of a major capital deployment initiative for AI compute, creating a robust and funded pipeline for Broadcom's products.
… We remain the industry leader with our Jericho 3 and Jericho 4 fabric solutions and enabling the world's largest deployments and multiple hyperscalers. Our strategic vision is to bring together Broadcom's leading technology and investor partners with the strongest balance sheets to deliver at scale sufficient compute capacity at the lowest cost and power for the leading AI frontier labs, including entropic and open AI. To deliver this vision, we are creating the AI XPV platform with Apollo and Blackstone and other leading investors to deploy more than 20 gigawatts of compute capacity through 2028. The first trench of this platform valued at $35 billion is in fact currently being launched by Apollo. Now turning to non-AI semiconductors. Q2 revenue of $4.2 billion was up 6% year on year. Bookings during the same period exceeded $6 billion, which is a clear indication we are on the path towards a full cyclical recovery. Broadband, server storage, and enterprise networking together were up, partially offset by a seasonal decline in wireless. Consistent with this trend in Q3, we forecast non-AI semiconductor revenue to be approximately $4.5 billion, up 12% from a year ago. In …
VMware Cloud Foundation 9.1 will support Nvidia GPUs, positioning Broadcom's software to manage heterogeneous AI environments alongside its own XPUs.
… up 124% year on year. Let me turn to infrastructure software segment. Q2 software revenue of $7.2 billion was up 9% year on year, in line with our guidance. Bookings continue to be strong as we sustain ARR growth of 17% year over year. For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year on year. We just released VMware Cloud Foundation 9.1, focused on improving infrastructure efficiency, security, and support for enterprise AI inferencing workloads. With strong server demand globally, The deployment of VCF 9.1 for on-prem cloud computing is extremely strong, driving robust revenue growth. This release adds heterogeneous compute support across GPUs and CPU architectures, including AMD, Intel, and Nvidia platforms, enabling customers, enterprise cloud customers, to run AI, Kubernetes, and traditional virtualized workloads on a common private cloud environment. So to sum it up for Q3, 2026, we expect our consolidated revenue to grow to 29.4 billion, up 84% year on year. We expect operating margin to be stable at approximately 67% of revenue and adjusted EBITDA to be at approximately 68% of revenue. And with that, let me turn the call over to Kirsten.