Broadcom Inc. reported its third quarter fiscal year 2025 earnings on September 5, 2025, with results beating expectations and showing 22% revenue growth. The company's performance was driven by strong AI-driven semiconductor and VMware contributions, which fueled margin expansion.
A major announcement from CEO Hock Tan revealed that Broadcom secured a new $10 billion customer for custom artificial intelligence chips (XPUs). This fourth large customer placed orders for XPUs, with shipments expected to commence in 2026. Analysts from Mizuho, Cantor Fitzgerald, and KeyBanc quickly identified OpenAI as this new customer, a partnership also reported by the Financial Times.
This $10 billion order significantly boosts Broadcom's forecast for AI revenue next year. CEO Hock Tan suggested that AI growth could exceed the previously offered 50% to 60% range. Mizuho analysts subsequently raised their AI revenue growth estimate for next year to 76%, projecting a total of $35 billion in AI revenue.
For the fourth fiscal quarter of 2025, Broadcom provided guidance for revenue of approximately $17.4 billion, which is higher than the $17.02 billion projected by Wall Street analysts. The company expects AI revenue to reach $6.2 billion in the upcoming quarter.
The total revenue for fiscal year 2026 is now expected to increase by about 30% to $81.8 billion, up from $63.1 billion in the current fiscal year. This substantial increase in AI-related revenue and the addition of a major new customer like OpenAI underscore Broadcom's pivotal and expanding role in the AI infrastructure market.
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