Broadcom (NASDAQ: AVGO) reported record fiscal third-quarter results on September 2, 2026, with consolidated revenue of $29.6 billion — up 86% year-over-year — and AI semiconductor revenue accelerating 221% to $16.7 billion, formally cementing custom AI accelerators and networking silicon as the majority of the company's business.
AI is now the majority of Broadcom's business
AI semiconductors accounted for roughly 56% of quarterly revenue and Semiconductor Solutions overall grew to 70% of the top line. CEO Hock Tan told analysts that "demand for our custom AI accelerators and networking continues to be very strong," and guided fiscal Q4 revenue to about $34.8 billion with AI semiconductor revenue accelerating to $21.7 billion, up 236% year-over-year. Non-GAAP operating margin held at 66%.
OpenAI, Google, Meta and Anthropic anchor the pipeline
Broadcom's custom-silicon roster spans Google's multiple generations of TPUs, Meta's MTIA family, and its co-developed programs with Anthropic and OpenAI's Jalapeno inference chip. The company said AI bookings continue to run above $30 billion, providing multi-quarter visibility that management expects to lift full-year fiscal 2026 AI semiconductor revenue to $58 billion — up 186% from fiscal 2025.
Cash machine funds VMware AI push
Third-quarter free cash flow reached $13.7 billion — 46% of revenue — and cash on hand climbed to $24.0 billion despite $5.6 billion of debt repayments and a $3.1 billion dividend. Broadcom also declared a $0.65 per-share quarterly dividend payable September 30 and used the run-up to unveil VMware-based private AI cloud platforms, an attempt to broaden the AI revenue base beyond hyperscale custom chip contracts and into on-premise enterprise infrastructure. That expansion aligns with the broader chip-industry order surge, from Samsung's $200B memory-and-foundry MOU with Broadcom to Marvell's own hyperscaler custom-silicon wins.
Reporting based on coverage from Broadcom Investor Relations, PR Newswire, 24/7 Wall St. and Crypto Briefing.