Core Insights - Alphabet reported fourth-quarter earnings exceeding analyst estimates, with full-year revenue surpassing $400 billion for the first time, but raised concerns about profitability due to projected capital expenditures for 2026 ranging from $175 billion to $185 billion, nearly double the $91.4 billion spent in 2025 [2][3] Alphabet's Financial Performance - The stock experienced volatility, initially dropping over 6% in after-hours trading, recovering to a 2% gain during the earnings call, and ultimately closing down about 2%, with an 8% decline in morning trading [3] Broadcom's Positioning - Broadcom stands to benefit from Alphabet's capital spending plans, particularly as a supplier for Google's Tensor Processing Unit program, with forecasts suggesting shipments related to Google’s TPUs could reach 7 million units by 2028, potentially driving Broadcom's AI ASIC revenue to $78.4 billion in 2027 [4] Broadcom's Revenue Growth - Broadcom's AI semiconductor revenue reached $6.5 billion in Q4, reflecting a 74% year-over-year increase, positioning the company to capture a portion of the projected 50% increase in data-center capital spending for 2026 [5] Broader AI Semiconductor Market - Broadcom is becoming a dominant player in the AI-driven semiconductor market, expecting its AI chip revenue to grow 100% year-over-year in Q1, reaching $8.2 billion, with overall revenue anticipated to rise 52% to $96 billion in fiscal 2026 [6]

Fast Company Innovation Festival Ticket Giveaway—Enter now! LOGIN SUBSCRIBE This figure was a 22% jump year-over-year (YOY) and beat Wall Street's predicted $15.83 billion, according to consensus estimates cited by CNBC. Broadcom anticipates this streak to continue, announcing an expected $17.4 billion in revenue for quarter-four, up from Wall Street's prediction of $17.02 billion. Broadcom also beat estimates for earnings per share, coming in at $1.69 adjusted, rather than $1.65 expected. Subscribe to th ...