Broadcom’s AI Outlook “Set to Significantly Improve” as New Orders Materialize

PALO ALTO, Sept. 5, 2025 - Broadcom Inc. (NASDAQ: AVGO) CEO Hock Tan signaled today that the semiconductor and infrastructure-software giant’s artificial-intelligence prospects for fiscal 2026 are poised for a material upswing, following the confirmation of over $10 billion in new AI infrastructure orders from a previously unannounced customer. Tan disclosed the development during a post-earnings conference call, aiming to allay investor concerns about decelerating growth in the AI chip market.

In remarks broadcast to shareholders, Tan noted that Broadcom’s collaboration with the new customer is already yielding production commitments, a departure from earlier quarters when such prospects were still in engineering qualification stages. “We now anticipate AI semiconductor revenue growth in fiscal 2026 to improve significantly beyond our prior forecasts,” he stated, underscoring the deepening traction of Broadcom’s custom AI accelerators in hyperscale data centers.

Complementing management’s commentary, Morningstar analyst William Kerwin published a note emphasizing that Broadcom’s “torrid AI growth is accelerating,” highlighting robust quarterly results and record backlogs that underpin the company’s market positioning. Kerwin pointed out Broadcom’s sustained revenue beat for the third quarter of fiscal 2025 - marked by a 63 percent year-over-year jump in AI-segment sales to $5.2 billion - as evidence that demand for the firm’s proprietary XPUs and networking solutions remains exceptionally strong.

Following these developments, Broadcom shares edged up 1.6 percent in extended trading, reflecting investor optimism about the company’s AI roadmap and its ability to capitalize on surging demand for specialized machine-learning hardware.

• Reuters contributed reporting.