Broadcom posted strong, silicon-fueled results for the third quarter of its fiscal 2026 – and forecast more to come – results that overshadowed robust earnings from the vendor’s VMware-led Infrastructure Software business.

Broadcom’s overall Q3 revenues surged 86% year over year to $29.6 billion, led by an outsized 127% increase in revenues from its Semiconductor Solutions division that totaled $20.8 billion for the quarter. Broadcom’s Infrastructure Software operations posted a more modest 29% year-over-year increase to nearly $8.8 billion in revenues, with that segment’s influence on Broadcom’s overall revenues plummeting from 43% last year to just 30% this year.

Overall net income on a general accepted accounting principles (GAAP) basis surged more than 200% to nearly $13.1 billion for the quarter, with Broadcom generating $14.2 billion in cash over that three-month period and laying out just $500 million in capex.

Broadcom’s revenue run continues to take advantage of the AI train, with CEO Hock Tan stating the vendor expects AI semiconductor revenues will double in fiscal 2027 to $115 billion before doubling again in fiscal 2028 to $230 billion.

“We have secured the supply to meet this outlook,” Tan told investors during the earnings call. “This AI revenue guidance through [2028] is being provided to give you the trajectory of our growth, that demand for compute continues to be extremely strong. As a result, I got to say we are very much on target to exceed $30 in earnings per share in fiscal 2028.”

Tan fanned that enthusiasm by laying out ongoing AI data center projects, including the recent expansion of a deal with Google to develop and supply future Tensor Processing Units (TPUs) and AI networking gear; work with Anthropic that includes the upcoming one-gigawatt (1GW) Ironwood, another five-gigawatts of TPU Version 8i set for fiscal 2027, and “clear line of sight to deliver another incremental 10-gigawatts.”

“Even as we expect Google to grow for us, Antropic is on track to become our largest XPU customer in 2027, and sustain that in 2028,” Tan added.

Tan also noted that Broadcom’s work with OpenAI on its AI data movement-optimized “Jalapeño” chip was also on track for a planned deployment of 1.3-gigawatts in 2027.

“Together with OpenAI, we are deep in development of the next generation XPU beyond Jalapeño, which is approaching tape out in 2028,” Tan said. “We have line of sight for OpenAI to deploy over five-gigawatts of Jalapeño and its successor generation of XPU, which would make OpenAI our second largest XPU customer.”

Tan also turned aside investor concerns over supply chain challenges, stating that Broadcom’s forecasts were “conservative” and that demand was continuing to outpace supply.

“We have secured supply and we think it's the right number to put it to [$115 billion], and if times, if circumstances change and our ability to scale more supply chainge, of course, we will uplift, but at this point that's our best outlook,” Tan said. “The same thinking applies to 2028, when we give you that outlook of $230 billion, this is real demand we believe based on what's available, what data center sites, locations are ready [in] 2028 with respect to our customers, the size of what we have and against the supply chain we have in leading-edge wafers, substrates, and [high-bandwidth memory]. … So this is, again, a carefully structured outlook that we believe we can achieve.”

Broadcom’s networking business was also lauded, with Tan touting the vendor as the “leader in AI networking,” backed by its 100 Tb/s Tomahawk 6 and recent tape out of its 200 Tb/s Tomahawk 7. The vendor also continues to push its optical digital signal processors (DSPs), electro-absorption modulated lasers (EMLs) and continuous-wave (CW) indium phosphide (InP) lasers.

“We continue to invest and invest heavily to provide the broadest and most leading-edge AI portfolio,” Tan added. “In fact, our AI networking revenue is expected to grow just as fast as XPUs over the next few years, reflecting our excellent progress with this key group of [large language model] customers.”

Broadcom has other interests?

That AI-fueled impact was further highlighted by Broadcom’s non-AI semiconductor business posting a modest 5% year-over-year increase in revenues to $4.2 billion for the quarter, results that were flat sequentially. Tan noted that segment is forecast post a similar 5% year-over-year increase during the next quarter.

Tan provided just a passing update on the VMware-linked Infrastructure Software business, claiming it was running at a 15% annual recurring revenue (ARR) growth level – though actual revenues are expected to slip slightly in the upcoming quarter to $8.7 billion – and that VMware’s recently launched Private AI Cloud platform would help tap into growing “enterprise consumption of AI” that is “opening a new opportunity for our Infrastructure Software business.”

CORRECTION: This story has been corrected to state Broadcom expects AI semiconductor revenues to double in fiscal 2027 and fiscal 2028.