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Broadcom's $10B AI Infrastructure Deals Fuel Exponential Growth
9 Sep
Summary
- Broadcom's AI revenue up 66% year-over-year
- Secured $10B in AI infrastructure orders from new customer
- Analysts bullish on Broadcom's AI and software exposure
As of September 10th, 2025, Broadcom Inc. (NASDAQ:AVGO) is emerging as a dominant player in the AI semiconductor market. The company's AI revenue has seen a remarkable 66% year-over-year increase, reaching a quarterly run rate of $4.1 billion.
Broadcom's strong performance is further bolstered by a significant $10 billion deal for AI infrastructure orders from a new customer, widely speculated to be OpenAI. This partnership is expected to drive a solid ramp in Broadcom's semiconductor revenue, even as non-AI segments like wireless and industrial have seen some declines.
Analysts remain bullish on Broadcom's AI and software exposure, which now accounts for 40% of the company's revenue. Bernstein's senior U.S. semiconductor analyst, Stacy Rasgon, praised Broadcom's strategic positioning, stating that the company's focus on high-performance AI compute and networking solutions, coupled with its disciplined execution in software, makes it a leader in critical technology markets.
The Baron Technology Fund, in its Q1 2025 investor letter, also expressed confidence in Broadcom's ability to capture the majority share in the custom-compute space, with the company's lead customer, Google, recently rolling out its 7th generation TPU. As Broadcom's two unnamed (but well-speculated) non-Google customers gain traction, the broader pipeline of four additional partners is expected to strengthen, supporting continued growth in Broadcom's AI business.
