Broadcom Rallies After Nvidia CEO Resigns
Broadcom rallies after Nvidia CEO resignation shifted investor demand to AI alternatives; Broadcom's $16.7 billion AI sales and high customer concentration drew attention.
KEY TAKEAWAYS
- Nvidia CEO resignation provided the immediate catalyst for investor interest in alternative AI-chip and networking suppliers.
- Broadcom reported fiscal third-quarter AI revenue of $16.7 billion and total revenue of $29.6 billion.
- Management guided fiscal fourth-quarter revenue near $34.8 billion, underscoring AI supply capacity and concentration risk.
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Broadcom Inc. (AVGO) rallied after Nvidia announced Jensen Huang's immediate resignation on Nov. 12, 2026, as investors sought alternatives to Nvidia. This shift increased attention on Broadcom’s AI-semiconductor scale and customer concentration, fueling optimism about further upside.
Nvidia Leadership Change and Investigation
Nvidia said Jensen Huang resigned effective immediately as president, chief executive, and board member. Chief Financial Officer Colette Kress was named interim CEO, and the board began a search for a permanent successor. The company appointed Harvey C. Jones as board chair and said it expects operations, customer commitments, and the product roadmap to continue without interruption.
Nvidia also disclosed it had launched an independent investigation related to national-security concerns raised in recent reporting.
Broadcom’s Financial Performance and Outlook
Broadcom reported fiscal third-quarter total revenue of approximately $29.6 billion for the quarter ended Aug. 2, 2026. Its AI-semiconductor revenue reached $16.7 billion, a 221.0% year-over-year increase. The company’s five largest end customers accounted for about 55.0% of net revenue, or roughly $16.0 billion, up from approximately 40.0% a year earlier.
Broadcom develops custom AI accelerators, known as XPUs, for a small group of customers. Management has cautioned that losing a major customer or a significant drop in demand could hurt results. CEO Hock Tan reportedly said on the company’s Sept. 2 earnings call that Anthropic is expected to become Broadcom’s largest XPU customer in 2027 and remain so in 2028.
For the fiscal fourth quarter ending Nov. 1, 2026, Broadcom guided revenue of about $34.8 billion, representing roughly 93.0% year-over-year growth. Management said it has secured enough supply to support approximately $115.0 billion of AI revenue in fiscal 2027, about double the prior level.
A secondary report noted Broadcom’s latest filing disclosed maximum potential liability of approximately $29.0 billion under an initial lease backstop, with a second backstop added on Oct. 26, 2026, potentially raising combined exposure to about $72.0 billion. These figures represent maximum potential liabilities, not recognized revenue, debt, or expected losses.
Investor interest in Broadcom and other chip suppliers coincided with Nvidia’s leadership change, but available evidence does not show that customers shifted orders to Broadcom, increased adoption of custom application-specific integrated circuits (ASICs) because of the change, or redirected networking demand. No Broadcom acquisition, regulatory approval, government action, or exchange notice has been linked to the leadership transition, and no regulator has alleged wrongdoing by Broadcom.
