Broadcom (AVGO): How Much Is AI Driving Record Semiconductor Revenue?

Aditi Sarkar

16 October 2026 07:47 PM AEDT

Broadcom (AVGO): How Much Is AI Driving Record Semiconductor Revenue?

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Highlights

GAAP net income was US$13.1 billion, up 216%, and non-GAAP net income was US$16.4 billion, up 95%.
The date of the fourth-quarter fiscal 2026 results was not found in the available information.
For the fourth quarter, which ends on 1 November 2026, Broadcom guided to revenue of about US$34.8 billion, up.
Wikipedia's S&P 500 list shows Broadcom as a member, added on 8 May 2014, and SlickCharts' Nasdaq-100 table ranks.

Broadcom (NASDAQ:AVGO)'s most recent verified corporate event is its fiscal third-quarter report, released on 2 September 2026 after the market close, as announced on 3 August. No newer company announcement was found in the available information. The quarter ended 2 August 2026 and was dominated by custom artificial intelligence (AI) accelerators and networking products, which management said continued to see very strong demand. The report is about six weeks old, so the share price has since reflected other information, and investors should treat the figures as dated.

Third-quarter results

Revenue was US$29.6 billion, up 86% year on year. Semiconductor solutions contributed US$20.8 billion, up 127%, and infrastructure software US$8.8 billion, up 29%. AI semiconductor revenue was US$16.7 billion, up 221% year on year and 54% on the previous quarter, according to chief executive Hock Tan, which is about 56% of total revenue on a simple calculation. Infrastructure software, though slower growing, still made up nearly 30% of revenue.

GAAP net income was US$13.1 billion, up 216%, and non-GAAP net income was US$16.4 billion, up 95%. Diluted earnings per share were US$2.68 on a GAAP basis and US$3.32 non-GAAP. Non-GAAP operating income was US$20.1 billion. Free cash flow was US$13.7 billion, about 46% of revenue, from operating cash flow of US$14.2 billion less capital expenditure of US$0.5 billion. Chief financial officer Amie Thuener said Broadcom achieved record revenue, operating profit and free cash flow.

Guidance and shareholder returns

For the fourth quarter, which ends on 1 November 2026, Broadcom guided to revenue of about US$34.8 billion, up 93%, and AI semiconductor revenue of US$21.7 billion, up 236%. It expects non-GAAP operating income of about 66% of revenue. These are company forecasts and not reported outcomes. The guided AI figure would be about 62% of guided revenue, again a simple calculation. For comparison, the earlier outlook for the third quarter had been revenue of US$29.4 billion and AI semiconductor revenue of roughly US$16 billion, according to a preview article, so reported results came in above that guidance.

The release cites a quarterly dividend of US$0.65 per share, with the next payment dated 30 September 2026 to holders of record on 21 September. The earlier June payment totalled US$3.1 billion.

Index context

Wikipedia's S&P 500 list shows Broadcom as a member, added on 8 May 2014, and SlickCharts' Nasdaq-100 table ranks it ninth. Index weight matters because passive funds hold the stock in proportion; however, neither list gives its current weight or float adjustment, and no inference about fund flows is drawn here.

Share price

Broadcom closed at US$344.33 on Thursday 15 October 2026, down about 0.6% from US$346.25 on 14 October, on volume of about 28.4 million shares, above the 22.7 million traded on 14 October and the 16.7 million on 13 October. The intraday range was US$334.61 to US$344.70, so the stock closed near the top of the day's range. After-hours trading was shown at US$341.89. On 13 October it closed at US$357.31, meaning the shares have declined roughly 3.6% over two sessions. The sources do not state the reasons for these moves and no cause is asserted. Prices are in US dollars.

What to watch

The date of the fourth-quarter fiscal 2026 results was not found in the available information. Matters worth following include whether AI semiconductor revenue reaches the guided US$21.7 billion, gross margin, which the preview article said was guided lower for the third quarter, the mix between semiconductors and infrastructure software, free cash flow conversion, and customer concentration in custom accelerators. Because guidance implies very large sequential growth, delivery against it will define how the quarter is judged. The roughly US$3.1 billion quarterly dividend outlay remains a substantial use of cash.

FAQs

Q: What is the main development for Broadcom?

A: Broadcom (NASDA

Q: What financial information is important for AVGO?

A: Revenue was US$29.6 billion, up 86% year on year.

Q: What should investors monitor next?

A: The company’s subsequent results and updates will show how the reported developments progress.

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