Broadcom's AI Boom Drives 29% Revenue Growth to $19.31B

Broadcom delivered strong first-quarter fiscal 2026 results, reporting revenue of $19.31 billion, up 29% year-over-year and beating analyst estimates of $19.18 billion. The company's AI revenue surged 106% to $8.4 billion, representing 44% of total revenue, as demand for custom AI chips and networking solutions continues to accelerate.

CEO Hock Tan highlighted the company's momentum in AI infrastructure, noting that Broadcom's AI revenue has now grown for four consecutive quarters. The company's custom AI accelerators (XPUs) and networking chips are being deployed by major cloud providers and enterprise customers building out AI data centers.

In addition to the strong quarterly results, Broadcom announced a new $10 billion share repurchase program, signaling confidence in its financial position and growth trajectory. The company also raised its quarterly dividend by 11% to $0.65 per share.

Broadcom's semiconductor solutions segment, which includes AI chips, grew 31% year-over-year to $16.2 billion, while its infrastructure software business grew 18% to $3.1 billion. The company's gross margin expanded to 49.1% from 47.5% in the year-ago quarter.

Looking ahead, Broadcom projects second-quarter revenue of approximately $20.5 billion, representing 30% year-over-year growth. The company expects AI revenue to continue its strong momentum, though it faces some near-term headwinds from customer inventory adjustments in certain networking products.

Broadcom's results underscore the ongoing AI infrastructure buildout, with the company positioned as a key supplier of custom silicon and networking solutions for the world's largest technology companies. The company's ability to deliver specialized AI chips at scale has made it an essential partner in the AI ecosystem.

The $10 billion share buyback program represents one of the largest in Broadcom's history and reflects the company's strong cash generation. Broadcom has returned over $60 billion to shareholders through dividends and share repurchases over the past four years.

Broadcom's stock rose 3% in after-hours trading following the earnings announcement, as investors reacted positively to the company's continued AI growth and capital return initiatives. The results also highlight how traditional semiconductor companies are benefiting from the AI boom, with Broadcom's custom chip business growing faster than its legacy networking products.

As AI infrastructure spending accelerates globally, Broadcom appears well-positioned to maintain its growth trajectory, with its custom silicon solutions and networking expertise making it a critical supplier in the AI supply chain.