Overview
- Broadcom reported a record fiscal second quarter with $22.2 billion in revenue and $10.8 billion in AI semiconductor sales, a 143% year‑over‑year increase.
- The company guided to roughly $16 billion in AI chip revenue for fiscal Q3, a figure that fell short of some investor hopes and led to a sharp share pullback from recent highs.
- Management said AI semiconductor bookings topped $30 billion in the quarter and that gigawatt‑scale commitments from OpenAI, Anthropic and Meta point to shipments rising toward more than 10 gigawatts in 2027.
- Reuters and Broadcom reported a custom inference chip co‑designed with OpenAI called 'Jalapeño' is running in labs and OpenAI plans to deploy it before year‑end, while JPMorgan said Broadcom’s TPU v9 2nm program remains on schedule for a 2028 ramp.
- Broadcom raised its tender‑offer cap to $3.0 billion and accepted about $2.9 billion of notes, signaled a pause on big acquisitions in favor of organic AI growth, and faces margin and concentration risks that analysts say investors should watch.