Broadcom AI Chip Revenue Soars 106% as Stock Climbs 4.6%
Broadcom reported Q1 FY2026 AI chip revenue of $8.4 billion, up 106% year-over-year, and its shares climbed 4.62% as the Direxion Daily Semiconductor Bull 3X ETF surged 11.6% on Monday. Non-leveraged semiconductor ETFs SMH and SOXX also rose 3.6% and 4.0% respectively amid accelerating sector earnings momentum.
1. Broadcom Q1 FY2026 AI Revenue Surge
Broadcom delivered $8.4 billion in Q1 FY2026 AI chip revenue, marking a 106% increase year-over-year. CEO Hock Tan highlighted accelerating AI revenue growth and cited strong visibility into 2027 production and sales pipelines.
2. Leveraged ETF Rally Boosts Broadcom Shares
The Direxion Daily Semiconductor Bull 3X ETF jumped 11.6%, amplifying sector gains and lifting Broadcom stock by 4.62%. Broader benchmarks included the VanEck Semiconductor ETF rising 3.6% and the iShares Semiconductor ETF up 4.0%, reflecting widespread semiconductor buying interest.
3. Broader Semiconductor Earnings Momentum
NVIDIA posted Q4 FY2026 revenue of $68.13 billion, up 73.2% year-over-year, while Micron beat estimates and forecast continued strength through fiscal 2026. These results, combined with Marvell’s raised guidance, fueled the sector rebound from recent volatility.