Broadcom’s AI Push Boosts Semiconductor Sales: More Upside Ahead?

Broadcom’s AVGO Semiconductor solutions revenues jumped 52% year over year to $12.52 billion in the first quarter of fiscal 2026. Semiconductor revenues accounted for 64.8% of net revenues that appreciated 29.5% year over year to $19.31 billion. The uptick in Semiconductor revenues was driven by the strong AI revenues, which surged 106% year over year. AI networking revenues grew 60% year over year and represented one-third of AI revenues. AVGO’s revenues from custom accelerators (XPUs) jumped 140% year over year. 

The company continues to gain market share in AI networking, driven by strong adoption of Tomahawk 6 switch as well as Broadcom’s 200G SerDes, which are capturing demand from hyperscalers. Tomahawk 6 family switch series is now shipping in production volume. Tomahawk 6 doubles the throughput of its predecessor, Tomahawk 5, and is highly optimized for scale-out and scale-up AI networks used for training and inference. Tomahawk 6 delivers exceptional flexibility…