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Broadcom's AI Boom: Q4 Earnings Soar on Custom Chips
13 Dec
Summary
- Broadcom's custom accelerator revenue more than doubled year-over-year.
- Q4 revenue reached $18 billion, a 28% increase from the previous year.
- Bank of America raised Broadcom's stock price target to $500.
Broadcom announced impressive fourth-quarter financial results, with revenue surging to $18 billion, marking a 28% increase year-over-year. The company's custom accelerator business, referred to as XPUs, saw its revenue more than double, fueled by escalating customer adoption for training large language models and monetizing AI platforms. This strong performance underscores Broadcom's pivotal role in the rapidly expanding AI infrastructure market.
In the wake of these earnings, Bank of America analysts revised their outlook, raising the price target for Broadcom stock to $500. This optimism is supported by new, substantial orders, including an $11 billion deal with Anthropic for late 2026 delivery and a $1 billion initial order from a fifth unnamed customer for custom ASIC designs. The partnership with OpenAI for significant compute capacity also remains on track.
