Broadcom's AI chip revenue doubles to $8.4B in Q1 FY2026, eyeing $100B by 2027 with strong hyperscaler demand.

Broadcom reported a 106% year-over-year increase in AI semiconductor revenue, reaching $8.4 billion in the first quarter of fiscal year 2026. The company benefits from partnerships with six major hyperscalers, driving sustained demand for its XPU technology. VMware, a Broadcom subsidiary, contributed $6.8 billion in revenue with high profit margins, supporting stable cash flows and funding further AI growth. Broadcom's current valuation reflects strong market confidence in its execution and growth prospects, with expectations to reach $100 billion in AI-related revenue by 2027.