By Insider Monkey Team
Publication Date: 2026-10-05 06:28:00
Broadcom (NASDAQ:AVGO) just booked $16.7 billion of AI chip sales in a single quarter. In fiscal Q3 2026, AI semiconductor revenue was up 221% from a year earlier, and management guided to $21.7 billion for fiscal Q4, a 236% increase.
Most people have never heard of Broadcom, but its chips sit inside the networks and data centers they rely on every day. The company designs custom AI accelerators (chips built to a customer’s specifications) and networking silicon for the largest cloud companies, and it sells infrastructure software, including VMware, to big enterprises. Semiconductors made up 70% of fiscal Q3 revenue.
The business is clearly booming. The harder question is whether the stock’s premium to its own history and its sector is fair, and that depends on how long growth can hold this pace and how many customers it rests on.
Custom chips and software that’s hard to leave
Broadcom’s edge is that it builds with its customers…
