Broadcom delivered record results in fiscal 2025, with total revenue rising 24% year-over-year to $64.0 billion. AI-related semiconductor sales powered this advance, surging 65% to reach $20.0 billion and driving overall chip revenue to its highest level in company history. The company’s gross margin expanded to 64.7%, supported by strong demand for its low-power custom ASICs versus traditional GPUs in hyperscale data centers.

Broadcom secured major multi-year agreements in late 2025 that underpin its long-term AI opportunity. A four-year deal to supply custom ASICs to OpenAI covers 10 gigawatts of power delivery, while a separate order from Anthropic is valued at approximately $10 billion. These partnerships extend Broadcom’s customer base beyond its three original hyperscalers—widely understood to be Alphabet, Meta Platforms and ByteDance—suggesting the firm’s $60–90 billion AI revenue forecast by 2027 may be conservative.

For the first quarter of fiscal 2026, management projects revenue growth of 28%, led by a near-doubling of AI semiconductor sales. This outlook reflects continued strength in data-center spending and a backlog that stood at $73 billion at year end. Broadcom CFO Tom Krause noted on the Q4 earnings call that capital commitments from hyperscale customers remain elevated, providing clear visibility into the first half of the year.

Wall Street analysts have raised their ratings on Broadcom following its robust results and optimistic guidance, boosting the consensus target by more than 100% over the past twelve months. Forecasts call for 52% revenue growth in 2026 and an additional 37% gain in 2027. The average price target implies roughly 33% upside versus current levels, underpinned by expectations that Broadcom will maintain its leadership in power-efficient AI compute solutions.