Broadcom reported a 74% year-over-year increase in AI semiconductor revenue in its fiscal fourth quarter, driven by strong demand for high-speed networking chips and custom AI accelerator ASICs. The company has secured backlog orders exceeding $73 billion for delivery through 2026 from hyperscale customers, and recent advances in co-packaged optics, high-speed DSPs and SerDes, and PCIe Gen6 over optics position Broadcom to capitalize on the next phase of AI infrastructure build-out.

Since completing its acquisition of VMware in 2023, Broadcom has transitioned enterprise customers onto subscription-based models, creating a high-margin, recurring revenue stream. Cross-selling opportunities between VMware’s virtualization and security suites and Broadcom’s networking hardware have expanded total addressable spend per customer, with software revenue now projected to represent a significant portion of total revenue by 2030.

Broadcom’s free cash flow is on track to exceed $50 billion annually by fiscal 2027 and surpass $107 billion by 2030, reflecting disciplined cost management and strong operating leverage. The company has increased its dividend for 15 consecutive years and maintains an active share buyback program, returning capital to shareholders while funding R&D investments to sustain leadership in AI and connectivity technologies.

Analyst consensus reflects a median one-year price target approximately 29% above current levels, with 46 of 48 covering analysts recommending a buy. Forecasts call for revenue to rise from $60.5 billion in 2025 to $106.6 billion by 2030 and EPS to climb from $6.19 to $18.66 over the same period. Projected revenue growth of 13% annually through 2029 and a 40% increase in earnings per share between 2027 and 2029 underscore expectations for sustained upside over the remainder of the decade.