Broadcom's AI Chip Revenue Surges 221% to $16.7B

Key Takeaways

• Broadcom AI chip revenue jumped 221% to $16.7 billion in Q3 fiscal 2026.
• Google, OpenAI, Meta, and Anthropic are securing massive custom chip orders from Broadcom.
• Broadcom projects AI revenue will reach $230 billion by fiscal 2028.
• Nvidia reported a 106% revenue increase to $96.2 billion in the same period.
• Palo Alto Networks stock gained 45% this year amid AI security demand.
• Ken Fisher increased holdings in Cisco and Palo Alto Networks.
• Adobe's Firefly AI product drove a 40% quarter-over-quarter rise in recurring revenue.
• Universal Music Group partnered with ElevenLabs for an AI music creation platform.
• Anthropic and OpenAI CEOs called for slowing AI development due to safety risks.
• US universities are launching agentic AI courses via Great Learning.

Broadcom AI Revenue Soars as Stock Remains Undervalued

Broadcom reported strong growth in its third quarter of fiscal 2026, with AI chip revenue jumping 221% to $16.7 billion. The company expects AI revenue to reach $21.7 billion in the next quarter, driven by demand for custom chips from major tech partners like Google, OpenAI, and Meta. Despite these impressive numbers, the stock price has not risen much because Wall Street expected slightly higher revenue guidance. Investors may be missing the long-term potential as Broadcom projects AI revenue to double again in fiscal 2028 to $230 billion.

Broadcom Stock Could Surge Despite Recent Flat Performance

Broadcom released its fiscal 2026 third-quarter results on September 2, showing an 86% increase in revenue to $29.6 billion. The company's AI chip revenue grew significantly, and management predicts it will reach $57.6 billion by the end of the year. Although the stock has underperformed compared to the semiconductor sector, analysts believe its low valuation offers a great opportunity for long-term investors. The firm expects earnings per share to exceed $30.00 by fiscal 2028.

Broadcom AI Revenue Explodes While Stock Trades at Low Multiple

A $1,000 investment in Broadcom a year ago would be worth $1,070 today, but the company's internal growth is much stronger. Broadcom expects its AI semiconductor revenue to accelerate to $21.7 billion in the fourth quarter of fiscal 2026. The company acts as a design partner for Google, Anthropic, OpenAI, and Meta, securing massive orders for its custom chips. Currently, the stock trades at about 12 times its expected 2028 earnings, which is much lower than other leading chip stocks.

Broadcom AI Revenue Grows Fast Despite Supply Chain Worries

Broadcom's AI chip revenue grew 221% last quarter, yet the stock price barely moved after the earnings report. The company expects to deliver tens of billions of dollars worth of Google TPUs annually over the next few years. Management stated that demand for their products actually exceeds their current outlook, but they have already secured enough supply to meet needs. The firm projects AI revenue will reach $230 billion by fiscal 2028, translating to roughly $30 in earnings per share.

Broadcom AI Revenue Jumps 221% While Stock Remains Cheap

Broadcom reported that its AI chip revenue increased by 221% in the third quarter of fiscal 2026 to $16.7 billion. The company plans to ramp up shipments of its Ironwood TPU version 7 to Anthropic and continues to supply custom chips to Google and Meta. Although the stock trades at a low multiple of 12 times its 2028 earnings target, the business shows strong momentum. CEO Hock Tan confirmed that demand is running ahead of their plans and they are working to improve supply.

Broadcom AI Revenue Surges Past Nvidia Growth

Broadcom reported a 221% increase in AI semiconductor revenue, reaching $16.7 billion in the third quarter of fiscal 2026. The company expects this revenue to grow to $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meanwhile, Nvidia saw a 106% revenue increase to $96.2 billion, but its growth comes from a much larger base. Some large companies like OpenAI are building custom chips to lower costs, which could reduce demand for Nvidia GPUs while creating new opportunities for Broadcom. Despite this, Nvidia maintains a broader customer base and trades at a lower valuation multiple than Broadcom.

Palo Alto Networks Stock Rallies Amid AI Security Demand

Palo Alto Networks stock has gained 45% this year as investors focus on its strong momentum in AI-powered security solutions. The company is entering fiscal 2027 with high expectations, though some investors worry the stock price has risen too quickly. PhillipCapital recently downgraded the stock to Neutral but raised its price target to $346. Despite skepticism about the valuation, the firm believes AI security tools will continue to drive growth as enterprises and governments adopt these solutions to fight cyber threats.

Ken Fisher Buys Cisco and Palo Alto Networks Stocks

Investor Ken Fisher has increased his holdings in both Cisco Systems and Palo Alto Networks, showing confidence in their AI and security strategies. Fisher sees Cisco as a long-term play that combines networking equipment with security software. He also added to his position in Palo Alto Networks, which offers a more focused exposure to security platforms. These moves highlight different approaches to investing in the technology sector, with Cisco providing broad infrastructure and Palo Alto offering concentrated security growth.

Nvidia CEO Claims Security Firms Profit From AI Fear

Nvidia CEO Jensen Huang suggested that cybersecurity companies benefit from creating panic about AI threats before launching new products. He made these comments at a Goldman Sachs conference, noting that the industry wants to create demand by highlighting problems. Data shows crypto attacks rose 50% in the first half of 2026, and over 100 companies warned that AI could make attacks more widespread. While security firms report strong demand, Huang argued that the fear is partly manufactured to sell solutions.

US Universities Offer Agentic AI Courses via Great Learning

Three US universities are partnering with Great Learning to offer courses on agentic AI, which can plan and complete tasks independently. Gartner predicts 40% of enterprise applications will use these AI agents by the end of 2026, yet few companies have successfully scaled them. The programs from Texas McCombs, Johns Hopkins, and MIT Professional Education range from 12 to 18 weeks and cover topics like Python, LLMs, and multi-agent design. Options include code-based tracks for developers and no-code tracks for business leaders who want to build AI tools without writing code.

Study finds financial sentiment tools vary by data method

Researchers tested five AI tools against human labels to see if they predict stock market signals correctly. The study used data from securities class actions between 2002 and 2025, linking 70,500 X messages to stock returns. Results showed that how data is sampled changes which tool works best for predicting market damage. Message volume in conversations that were 17.6% spam did not predict market outcomes or settlement sizes. The findings suggest that benchmark agreement proves a tool understands language but does not guarantee it predicts rankings.

AI leaders urge slowing development due to safety risks

CEOs from Anthropic and OpenAI called for a slowdown in AI development to prevent dangerous outcomes. Anthropic CEO Dario Amodei warned that AI could take over the internet within six to 12 months without proper guardrails. He stated that while AI can improve human life, it must be built carefully to avoid catastrophic damage. OpenAI CEO Sam Altman and Tesla CEO Elon Musk also expressed concern about the potential risks. These warnings contrast with President Donald Trump, who said he does not worry about AI risks and focuses on winning against China.

Adobe stock rises as AI revenue and cash flow grow

Adobe stock increased 1.4% after reporting strong third quarter results for 2026. The company earned US$6.76 billion in revenue and US$27.5 billion in annualized recurring revenue. Its AI product Firefly contributed to a 40% quarter-over-quarter rise in recurring revenue. Monthly active users for Acrobat and Express exceeded 900 million, while creative freemium products surpassed 100 million users. The company generated a record US$2.52 billion in cash from operations, funding its growth without needing extra debt.

Carlyle Group stock undervalued after Exiger AI launch

Carlyle Group shares dropped 12.29% in the last month after its portfolio company Exiger launched an AI platform. Exiger recently completed a US$1.2 billion investment round led by Carlyle Group. Analysts believe the stock is undervalued with a fair price of US$58.06 compared to the current price of US$42.34. Carlyle is expanding its funds through new products and partnerships with firms like UBS to grow its asset base. The company trades at a high P/E ratio of 41.5x, suggesting investors expect future earnings to grow significantly.

Senators draft bill to regulate AI and prevent risks

A group of senators led by Maria Cantwell is working on a bill to regulate artificial intelligence. The proposed law aims to create rules that ensure AI benefits society without causing harm. Experts are helping the senators develop principles for responsible AI development and use. Some critics argue the bill might be too broad or not strict enough to address all risks. Dr. Andrew Ng noted that AI is a major societal issue that requires serious attention to potential dangers.

Universal Music Group partners with ElevenLabs on AI music platform

Universal Music Group signed a multi year deal with ElevenLabs to create an AI powered music creation platform. This new tool will use licensed songs to make remixes, mashups, and personalized vocal experiences with artist consent. The partnership helps the company test AI driven fan co creation while keeping songwriter compensation safe. Management aims to improve revenue per user and support their planned cost efficiency program through these new products. The company projects revenue of 15.9 billion euros and earnings of 2.0 billion euros by 2029.

Sources

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• Broadcom's AI Chip Revenue Grew 221% Last Quarter. A $1,000 Investment a Year Ago Would Be Worth This Much Today.
• Broadcom's AI Chip Revenue Grew 221% Last Quarter. A $1,000 Investment a Year Ago Would Be Worth This Much Today.
• Broadcom's AI Chip Revenue Grew 221% Last Quarter. A $1,000 Investment a Year Ago Would Be Worth This Much Today.
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