Broadcom's AI outlook draws mixed market reaction

Tech Hardware & Electrical Equipment Written by: Angela Harmantas 13:23 Thu 03 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Broadcom Inc ( NASDAQ:AVGO XETRA:1YD ) View Price & Profile Broadcom's AI outlook draws mixed market reaction Published: 13:23 03 Sep 2026 EDT Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) shares fell 3.3% Thursday afternoon despite the company issuing a bullish long-term forecast for its artificial intelligence business, projecting AI revenue of $230 billion in fiscal 2028. The company also raised its fiscal 2027 AI revenue outlook to $115 billion, up from a prior guide of more than $100 billion, and expressed confidence in earnings per share of $30 or more for that year. Anthropic and OpenAI are set to become Broadcom's largest customers, according to Jefferies, with AI networking revenue expected to grow at a similar pace to XPU compute revenue. Jefferies called the fiscal 2028 AI revenue figure an unexpected upside surprise given Street estimates of $26 EPS, and noted Anthropic's deployment is set to grow from 1 gigawatt this year to 5 gigawatts in fiscal 2027 and 10 gigawatts more in 2028, while OpenAI expands from 1.3 gigawatts to more than 5 gigawatts over the same window. Together the two account for roughly 15 of the 20 gigawatts of demand outlined for fiscal 2028. Google continues growing under a new long-term agreement but is set to fall to Broadcom's third-largest customer, Jefferies said, with management cautioning that land, power and shell readiness will gate deployment timing. For the quarter, Broadcom reported revenue of $29.6 billion, up 33% sequentially and above Street estimates. Semiconductor Solutions revenue reached $20.8 billion, with AI revenue within the segment at $16.7 billion, up 54% sequentially. Infrastructure Software revenue was $8.7 billion. Consolidated gross margin came in at 75.0% and operating margin at 67.9%, both ahead of Street estimates. Earnings per share came in at $3.32, above the $3.21 consensus. BofA raised its estimates while lowering its price objective, citing increasing exposure to frontier AI labs. The firm said it is less comfortable with rising exposure to Anthropic and OpenAI, both of which have other silicon options, and flagged Google's declining gigawatt allocation as puzzling given MediaTek's rising influence. Baird said Broadcom is guiding for two consecutive years of AI revenue doubling and is well positioned amid an industry-wide shift toward inferencing performance. The firm said Anthropic is on track to become Broadcom's largest TPU customer in 2027, with deployment doubling from 5 gigawatts to 10 gigawatts in 2028. Continue reading