Broadcom reported fiscal Q3 2026 revenue of $29.59 billion, marking an 86% increase. Revenue from AI semiconductors reached $16.7 billion, a 221% year-over-year rise. The company raised its full-year AI revenue forecast to $58 billion from $56 billion.
The company provided projections for future AI chip revenue, targeting $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Broadcom's key clients include Google, Meta, OpenAI, and Anthropic, with multi-year contracts providing revenue visibility.
Despite these results, shares trade around $353, which is 29% below the 52-week high of $495. The stock price dip followed Q4 fiscal 2026 revenue guidance of approximately $34.8 billion, which fell slightly short of analyst expectations.
Analysts note that supply constraints, rather than demand weakness, currently limit near-term growth. The average analyst price target for the stock is $533, suggesting a potential 50% upside from current levels.
