Broadcom Stock Rises on New AI Chip Customer Order After Earnings Beat -- Barrons.com
+1.23%
By Tae Kim
Broadcom stock rose in after-hours trading after the company announced it has won an order from a new customer on its earnings call.
For its fiscal third quarter, the company reported revenue of $15.95 billion versus the Wall Street consensus of $15.8 billion, according to FactSet. Adjusted earnings came in at $1.69 per share, which is above analysts' consensus estimate of $1.66 per share.
Guidance was solid. For the current quarter, Broadcom guided to $17.4 billion in revenue, compared to analysts' expectations of $17 billion.
"Broadcom achieved record third quarter revenue on continued strength in custom AI accelerators, networking and VMware," Broadcom CEO Hock Tan said in the release.
On the earnings call, Tan announced Broadcom had secured $10 billion in AI orders from a new qualified customer, which he believes will "significantly" improve the AI revenue outlook for fiscal 2026.
Broadcom shares wavered up and down in after-hours trading following the release, and then rose 3% after Tan announced the new unnamed customer win.
Broadcom's semiconductors compete in several categories, including networking, broadband, server storage, wireless, and industrial. The company is also a leader in the market for high-end artificial intelligence application-specific integrated circuits, or AI ASICs. It helps large technology companies design custom chips for AI.
Shares of Broadcom have nearly doubled over the past year and traded up 1.2% to $306.10 in Thursday trading.
Write to Tae Kim at tae.kim@barrons.com
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