Broadcom Q3 Earnings Spotlight AI Revenue

Broadcom Inc. (NASDAQ: AVGO) will report fiscal third-quarter 2026 results on September 2, 2026, after the U.S. market close. Investors are focused on the company’s AI semiconductor momentum and whether Alphabet’s expanded relationship with Marvell Technology could affect demand expectations.

Q3 Guidance and Estimates

Broadcom has guided third-quarter total revenue to about $29.4 billion, with AI semiconductor revenue targeted near $16.0 billion and an adjusted operating margin around 67% of revenue. This implies roughly 84% year-over-year growth in total revenue and more than 200% growth in AI semiconductor sales compared with a prior-year base near $15.95 billion. AI semiconductor revenue is expected to be the dominant contributor to the quarter, driven by custom accelerators and AI networking.

Street estimates cluster around $29.24 billion in revenue and $3.22 in non-GAAP earnings per share, setting the bar for analysts and investors assessing upside or downside risk.

For context, Broadcom posted record second-quarter results with total revenue of $22.19 billion, adjusted EPS of $2.44, and AI chip revenue of $10.8 billion, a 143% year-over-year increase that exceeded management’s forecast. The company attributed the gains to accelerating AI semiconductor sales and strong operating leverage, framing the third quarter as a test of continuity.

AI Positioning and Google Risk

Broadcom is a global semiconductor and infrastructure-software company that focuses on custom AI chips and AI networking. It designs application-specific integrated circuits (ASICs) tailored to large customers’ AI workloads. These ASICs perform defined functions rather than general-purpose computing, which can reduce costs for hyperscale users but concentrates revenue among a few major clients.

Broadcom has been a key partner with Alphabet in developing Google’s Tensor Processing Units (TPUs), custom accelerators powering Google’s services and increasingly offered to third parties. This relationship has been central to Broadcom’s AI growth for over a decade.

Separately, Marvell disclosed in an SEC filing a warrant granting Google the right to purchase up to 58.9 million Marvell shares at $206.58 per share, representing about $12.2 billion in potential equity value. This warrant is tied to milestones for products that “attach to the TPU ecosystem.” The expanded commercial relationship between Alphabet and Marvell has raised investor concerns about Broadcom’s future share of Google-related AI hardware.

This quarter will serve as a direct test of Broadcom’s AI momentum and operating-margin profile. Meeting or exceeding guidance would reinforce its position as a leading ASIC provider and validate management’s revenue mix. Falling short could intensify questions about customer concentration and analyst assumptions, influencing investor positioning ahead of the report.