Hock Tan guides Broadcom's AI revenue to $21.7 billion after a $16.7 billion quarter

Broadcom’s custom AI silicon brought in $16.7 billion in its fiscal third quarter.

CEO Hock Tan told investors the run is not slowing.

Semiconductor solutions climbed 127% to $20.8 billion

Broadcom’s revenue for the quarter ended August 2 was $29.6 billion, up 86% from a year earlier, the company said in an earnings release.

The semiconductor solutions segment grew 127% to $20.8 billion. Infrastructure software grew 29% to $8.75 billion.

AI semiconductor sales were $16.7 billion, a 221% increase from the same period in 2025 and up 54% from the prior quarter, Tan said. He called demand for the company’s custom accelerators and networking gear “very strong.”

Broadcom generated $13.7 billion in free cash flow, or about 46% of revenue. Non-GAAP operating margin was 66%.

Tan said in the earnings release he expects AI semiconductor revenue to climb to $21.7 billion in the fourth quarter. That would be a 236% rise from the same period a year ago.

CFO Amie Thuener said the company sees fourth-quarter revenue guidance of about $34.8 billion, up 93% from a year ago. The company foresees that its non-GAAP operating margin will remain at 66%.

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