Broadcom Q3 results showed another sharp acceleration in artificial intelligence demand, with revenue rising 86% from a year earlier to $29.6 billion and adjusted earnings exceeding Wall Street expectations.
Broadcom (Nasdaq: AVGO) reported adjusted earnings of $3.32 per share, compared with the $3.24 analyst consensus, while revenue topped the $29.43 billion estimate. According to the company’s official earnings release, GAAP operating income reached $16.0 billion and free cash flow totaled $13.7 billion.
AI semiconductor revenue was the main growth engine, increasing 221% year over year and 54% sequentially to $16.7 billion. Chief Executive Hock Tan said demand for custom AI accelerators and networking products remained very strong, and the company expects AI semiconductor revenue to reach $21.7 billion in the fourth quarter.
Broadcom Q3 Results Put AI Growth Against a Softer Outlook
Broadcom guided for fourth-quarter revenue of approximately $34.8 billion and adjusted operating income equal to about 66% of projected revenue. The sales outlook was slightly below the roughly $35 billion analyst consensus, even as it implied year-over-year revenue growth of 93%.
Shares fell about 6% in initial after-hours trading following the release. The reaction suggests investors were weighing the scale of Broadcom’s recent AI-driven gains against elevated expectations and the modest shortfall in the headline revenue outlook.
Semiconductor solutions generated $20.84 billion of quarterly revenue, up 127%, while infrastructure software revenue rose 29% to $8.75 billion. The results leave Broadcom’s near-term investment case closely tied to whether demand for custom accelerators and AI networking can continue expanding at the pace embedded in management’s fourth-quarter forecast.
