Broadcom beats on earnings and revenue, says AI chip sales will double in current quarter

Core Insights - Broadcom is expected to report a 25% increase in overall revenue for the fourth quarter, reaching approximately $17.49 billion compared to $14.05 billion a year earlier [1][5] - Analysts anticipate adjusted earnings per share of $1.95 for the current quarter, with sales projected at $18.27 billion [2] - The company is well-positioned to benefit from the AI infrastructure boom, leveraging its custom chips (XPUs) and networking technology for data centers [2] Financial Performance - Broadcom's stock has surged 75% in 2025, reaching all-time highs, with a current market capitalization of $1.91 trillion [3] - The company is gaining traction with its custom chips, such as Google's tensor processing units, which are seen as competitors to Nvidia's offerings [3] Strategic Partnerships - OpenAI is set to deploy custom AI chips developed with Broadcom starting next year, indicating strong demand for Broadcom's technology [4] - The CEO of Broadcom, Hock Tan, is expected to discuss the company's AI chip pipeline and partnerships in an upcoming investor meeting [4] Market Expectations - Investors are likely to focus on FY26 AI revenue guidance, contributions from Google and OpenAI, and the gross margin trajectory due to the ramp-up of custom XPUs [5]