By Aniruddha Ganguly
Publication Date: 2025-12-24 16:02:00
Broadcom’s AVGO Semiconductor revenues are benefiting from strong demand for XPUs, which are a type of application-specific integrated circuit (ASIC) necessary to train Generative AI (Gen AI) models. In the fourth quarter of fiscal 2025, AI revenues surged 74% year over year to $6.5 billion. XPU adoption accelerated in the reported quarter as enterprises continue to use these to train their large language models and monetize their platforms through inference APIs and applications. Alphabet and Meta Platforms are major users of these XPUs.
AVGO’s expanding clientele, which now includes Anthropic, is driving growth. In the third quarter of fiscal 2025, Broadcom received a $10 billion order to sell Alphabet’s latest TPU Ironwood racks to Anthropic. In the fourth quarter of fiscal 2025, Broadcom received an additional order worth $11 billion from the same customer. The company’s current order backlog for AI switches exceeds $10 billion as AVGO’s latest 102-terabit per…
