# Opinion: Broadcom's AI revenue growth keeps me adding shares

Digest AI · Hardware & Compute · published 2026-09-30T16:46:00Z

Canonical: https://digestai.news/story/opinion-broadcom-s-ai-revenue-growth-keeps-me-adding-shares

## Summary

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 for fiscal 2027 and $230 billion for fiscal 2028.

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.

## 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.

## Why it matters

Broadcom's expanding AI chip business and robust cash flow could shift the AI hardware landscape, giving investors a potential alternative to Nvidia's dominance.

## Sources

1. [The Only Way I Stop Adding Broadcom is an AI Collapse](https://247wallst.com/investing/2026/10/01/the-only-way-i-stop-adding-broadcom-is-an-ai-collapse) (247wallst.com, 2026-09-30)

## Cite

Digest AI, "Opinion: Broadcom's AI revenue growth keeps me adding shares", 30 September 2026, https://digestai.news/story/opinion-broadcom-s-ai-revenue-growth-keeps-me-adding-shares

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