Broadcom Forecasts $19.1 Billion in First-Quarter Revenue as AI Backlog Reaches Record
Mondeum Capital (UK) Limited
Broadcom Inc. projected first-quarter fiscal 2026 revenue of about $19.1 billion, underscoring continued momentum in demand for its artificial-intelligence semiconductors that has driven the company’s backlog to a record $73 billion.
Chief Executive Officer Hock Tan said revenue climbed 24% in fiscal 2025 to an all-time high of $64 billion, buoyed by a 65% surge in AI-related sales to roughly $20 billion. Growth in AI chips helped lift Broadcom’s semiconductor business and complemented contributions from VMware, which was added to the company’s portfolio earlier this year.
Tan said the rapid expansion of AI revenue is likely to pressure gross margins because of product mix, though operating income should continue to increase as the company benefits from scale and operating leverage. Broadcom is also investing in an advanced packaging facility in Singapore to support rising AI demand and ease supply-chain constraints as orders accelerate.
The $73 billion backlog provides about 18 months of revenue visibility, positioning Broadcom for sustained growth as cloud-service providers and enterprise customers increase spending on next-generation computing infrastructure.
Investors will be watching upcoming earnings reports for indications of how quickly Broadcom can convert its backlog into revenue and how margins evolve as AI products make up a larger share of the business.
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