What is Broadcom's $10 billion AI chip deal?

Broadcom has secured a $10 billion deal to supply custom AI chips, or XPUs, to a "very significant customer." These chips are expected to ship early next year, significantly boosting Broadcom's fiscal 2026 AI revenue.

How did Broadcom perform in Q3 2025?

Broadcom reported a 22% year-over-year increase in revenue, reaching $15.95 billion and beating Wall Street's predicted $15.83 billion. The company also exceeded earnings per share expectations, coming in at $1.69 adjusted rather than the expected $1.65.

What is Broadcom's Q4 2025 revenue forecast?

Broadcom anticipates $17.4 billion in revenue for the fourth quarter of 2025, up from Wall Street's prediction of $17.02 billion, indicating continued strong performance.

Home / Business and Economy / Broadcom Secures $10B AI Chip Deal, Beats Q3 Earnings Expectations

Broadcom Secures $10B AI Chip Deal, Beats Q3 Earnings Expectations

6 Sep

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Summary

Broadcom reports 22% year-over-year revenue growth in Q3
Announces $17.4B revenue forecast for Q4, exceeding Wall Street estimates
Secures $10B deal for custom AI chips with a "very significant customer"

Broadcom Secures $10B AI Chip Deal, Beats Q3 Earnings Expectations

In the third quarter of 2025, the semiconductor and infrastructure software company Broadcom reported impressive financial results. The company's revenue reached $15.95 billion, a 22% jump compared to the same period last year. This figure also beat Wall Street's predicted $15.83 billion, according to consensus estimates.

Broadcom's success was driven by strong demand for its AI semiconductors and continued growth in its VMware business. The company's president and CEO, Hock Tan, stated that the "demand for custom AI accelerators from our three customers continued to grow." Broadcom also announced that it has secured a new "very significant customer" for its AI chips, worth a staggering $10 billion. These custom AI chips, or XPUs, are expected to ship early next year, significantly boosting Broadcom's fiscal 2026 AI revenue.

Looking ahead, Broadcom anticipates even stronger performance in the fourth quarter, forecasting $17.4 billion in revenue, up from Wall Street's prediction of $17.02 billion. The company also beat estimates for earnings per share, coming in at $1.69 adjusted, rather than the expected $1.65.

These positive results have had a significant impact on Broadcom's stock price, which rose more than 15% after-hours and into premarket trading on Friday. This turnaround comes after the company's shares fell earlier this week alongside a dip by fellow chipmaker Nvidia.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.