On September 4th (local time in California, U.S.), Broadcom released its fiscal Q3 2025 earnings report (for the period ending August 3rd), with standout core data: it achieved $15.952 billion in revenue (a 22.0% year-over-year increase and 6.3% quarter-over-quarter growth), hitting a new revenue high for the same period.
The key highlight of the earnings report centers on its AI business: **Q3 AI revenue soared 63% year-over-year to $5.2 billion**. Hock Tan, Broadcom’s President and CEO, revealed the company has issued a more optimistic forecast for Q4 AI semiconductor revenue—projecting it will rise to $6.2 billion, marking 11 consecutive quarters of growth. This momentum is driven by customers’ continued heavy investment in the AI sector.
More notably, Broadcom has made another breakthrough in AI customer expansion. Its custom AI XPU (ASIC) business targets seven major AI enterprises, having already secured orders from three; in the previous quarter, the company successfully converted another potential customer into an actual client. The new customer’s order for Broadcom XPU-based AI computing racks is valued at over $10 billion, serving as a key driver for AI business growth.
Additionally, Broadcom’s revenue growth benefits from the synergy of its custom AI accelerators, networking, and VMware businesses—three segments that collectively supported the quarter’s "record-breaking performance." According to Morningstar data, both Broadcom’s Q3 revenue and adjusted earnings per share ($1.69) exceeded market expectations, while its Q4 revenue forecast of $17.4 billion also outpaced analysts’ consensus estimate of $17 billion.
ICgoodFind concludes: Broadcom’s dual growth in Q3 revenue and AI business, combined with the landing of the over-$10-billion new order, underscores its competitiveness in the AI chip space. Sustained growth in its AI business moving forward is expected to further solidify its market position.
