Broadcom rises 2% on strong custom AI chip outlook

Broadcom shares rose about 2% early on Monday, September 21, 2026, as investors welcomed a strong outlook for its custom artificial intelligence chips and networking hardware.

CEO Hock Tan recently rejected concerns that slower AI adoption could weaken demand for custom processors. Tan stated that infrastructure spending should continue to back the business, especially as inference workloads grow.

In its latest fiscal third quarter, Broadcom generated $29.6 billion in revenue, representing an 86% increase from the prior year. Revenue from AI semiconductors jumped 221% to reach $16.7 billion.

Looking ahead, Anthropic is expected to become Broadcom's largest XPU customer in 2027. Management forecasts AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028.