Broadcom Inc. (AVGO) Posts $15.95B Q3 Revenue, AI Segment Surges 63%

Core Insights - Broadcom Inc. is recognized as the second-best stock to own for grandchildren, highlighting its strong market position in semiconductors and infrastructure software [1] - The company reported record Q3 results for fiscal 2025, showcasing its growing influence in AI and networking technologies [1] Financial Performance - Q3 revenue reached $15.95 billion, reflecting a 22% year-over-year increase, driven by high demand for custom AI accelerators and networking solutions [2] - AI-related revenue surged 63% to $5.2 billion, marking the eleventh consecutive quarter of growth, with expectations to reach $6.2 billion in Q4 [2] - Non-GAAP net income was reported at $8.4 billion, while free cash flow increased by 47% year-over-year to $7.0 billion [2] Shareholder Returns - Broadcom returned $2.8 billion to shareholders through dividends, declaring a quarterly payout of $0.59 per share payable on September 30 [2] Future Outlook - The company provided Q4 revenue guidance of $17.4 billion, indicating a 24% increase from the previous year, signaling continued growth momentum [3] - A significant factor in this growth is the company's expanding role in AI semiconductors, including a landmark $10 billion contract with a leading AI customer, expected to enhance earnings and cash flow starting in 2026 [3]