The chipmaker's AI semiconductor revenue surged 143% year-over-year, and Q3 guidance suggests the trajectory is only steepening.
Broadcom just posted the kind of quarter that makes other chipmakers sweat. The company reported fiscal Q2 2026 revenue of $22.2 billion, a 48% jump from the same period last year, with AI semiconductors doing most of the heavy lifting.
AI chip revenue alone hit $10.8 billion, up 143% year-over-year. To put that in perspective, Broadcom’s entire AI semiconductor business last quarter pulled in $8.4 billion. It grew by nearly $2.4 billion in a single quarter.
The numbers behind the record
Adjusted EBITDA came in at $15.2 billion, representing 69% of total revenue.
Free cash flow was $10.3 billion.
CEO Hock Tan pointed to what he described as accelerating AI momentum, noting that the company has now strung together 13 consecutive quarters of growth in its AI segment.
The growth is being fueled by demand for custom AI accelerators and networking solutions built for hyperscale customers.
Q3 guidance raises the stakes
Broadcom is guiding for approximately $29.4 billion in total consolidated revenue for Q3 2026. That would represent an 84% increase year-over-year.
Within that, the company anticipates AI semiconductor revenue of $16.0 billion. That’s a roughly 48% sequential jump from the $10.8 billion it just reported.
The longer-term target is even more ambitious. Broadcom is aiming for more than $100 billion in annual AI chip revenue by 2027.
Why the stock dipped anyway
Despite the record quarter and eye-popping guidance, Broadcom shares declined in after-hours trading following the announcement.
Market analysts have attributed the post-earnings dip to the specifics of Broadcom’s guidance. The results slightly exceeded consensus estimates, but “slightly” is the operative word.
That said, the custom silicon market where Broadcom operates is somewhat insulated from the GPU arms race. Broadcom, along with Marvell Technology, has carved out a strong position in this niche.
