Opinion: Broadcom's AI revenue growth keeps me adding shares
The author explains why they continue to buy Broadcom shares, pointing to the company's role in custom AI accelerators and its strong financials. Broadcom reported fiscal Q3 revenue of $29.59 billion, up 85.5% YoY, with AI semiconductor revenue of $16.70 billion, up 221%. Management guided total revenue of about $34.8 billion for Q4 and projected roughly $115 billion in AI semiconductor revenue…
Key points
- Broadcom reported fiscal Q3 revenue $29.59 billion, AI semiconductor revenue $16.70 billion, up 221% YoY.
- Management projects $115 billion AI semiconductor revenue for FY2027 and $230 billion for FY2028.
- The author plans to add more Broadcom shares, watching the Dec 9th 2026 Q4 report for $21.7B AI revenue guide.
Cash generation is highlighted: free cash flow was $13.67 billion (46% of revenue), the firm paid down $5.6 billion of long‑term debt and its cash balance rose to $23.98 billion. The quarterly dividend is $0.65 after a 10% increase, marking the fifteenth consecutive annual rise. The stock trades near $351.19, about 12 times the fiscal 2028 EPS target, and the company claims its Jalapeno chip for OpenAI costs “half the cost of a GPU.” The author will watch the Dec 9th, 2026 Q4 report to see if AI revenue hits the $21.7B guide and if free cash flow stays strong.
The Only Way I Stop Adding Broadcom is an AI Collapse
247wallst.com · 30 September 2026
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