Broadcom stock is soaring on AI chip demand and mysterious new customer with $10 billion to spend

Core Insights - Broadcom reported third-quarter financial results with revenue of $15.95 billion, a 22% year-over-year increase, surpassing Wall Street's expectation of $15.83 billion [2][3] - The company anticipates fourth-quarter revenue of $17.4 billion, exceeding Wall Street's prediction of $17.02 billion [2] - Earnings per share were reported at $1.69, beating the expected $1.65 [2] Revenue Drivers - The growth in revenue was significantly influenced by strong demand for AI semiconductors and continued growth in VMware [3] - Broadcom's president and CEO highlighted the increasing demand for custom AI accelerators from three existing customers and the addition of a fourth significant customer [3] Major Contracts - The new customer has placed an order for $10 billion worth of custom AI chips, expected to ship early next year, which is projected to enhance Broadcom's fiscal 2026 AI revenue estimates [5] - Following these announcements, Broadcom's stock price rose over 15% in after-hours trading, marking a recovery from a previous decline [5]