Broadcom AI revenue jumps 221%, guides fiscal Q4 sales to $34.8 billion

Rosenblatt Securities analyst Sajal Dogra reiterated a Buy rating and raised the price target from $500 to $600. Cantor Fitzgerald analyst C.J. Muse kept an Overweight rating and lifted the price target from $525 to $600. KeyBanc Capital Markets analyst John Vinh reaffirmed an Overweight rating and a $575 price target.

JPMorgan analyst Harlan Sur maintained an Overweight rating and a $580 price target. Dogra said Broadcom indicated it had secured enough supply to support AI revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. He said demand remains above the company’s guidance, but that power, shell readiness and physical deployment constrain the outlook. He added that upside would depend on Broadcom’s ability to unlock additional supply capacity and on customers completing data-center deployments on schedule, creating a longer and stronger revenue pipeline.

Broadcom said roughly 30GW is deployed through fiscal 2028 and beyond, according to the source text. Cantor Fitzgerald said Broadcom lifted its AI revenue guide for fiscal 2027 to $115 billion, from a prior outlook of over $100 billion. Buy-side expectations had reached as high as $140 billion, but the company remains severely supply-constrained. The firm set fiscal 2028 AI revenue guidance at $230 billion, implying total fiscal 2028 revenue of around $285 billion, about $50 billion above consensus, Muse said.

Management also guided fiscal 2028 earnings to exceed $30 per share, versus consensus of $26.38 per share, he said. KeyBanc Capital Markets said Broadcom reported revenue of $29.6 billion and earnings of $3.32 per share, above consensus estimates of $29.2 billion and $3.22 per share. AI revenue rose 221% year on year and 54% sequentially to $16.7 billion, while XPU revenue increased 250% year on year and networking climbed more than 150% year on year, Vinh said. Management guided fiscal fourth-quarter revenue to $34.8 billion, in line with expectations, which implies earnings of $3.79 per share, below the $3.85 per share consensus, he added.

JPMorgan said Broadcom expects AI semiconductor revenue to rise from around $58 billion in fiscal 26 to about $115 billion in fiscal 2027, then increase again to approximately $230 billion in fiscal 2028, according to Sur. The analyst described that outlook as both strong and conservative, saying demand was running above those levels. He added that, assuming Broadcom’s outlook includes a similar level of supply constraint as NVIDIA Corp, the numbers point to demand of over $145 billion in fiscal 2027 and over $270 billion in fiscal 2028.

JPMorgan also highlighted Broadcom’s AI customer diversification, including Alphabet Inc, Meta Platforms Inc, Anthropic, OpenAI and others. Shares of Broadcom had fallen 5.44% to $347.27 at the time of publication on Thursday.