Broadcom Sees Surge in AI Chip Sales, Unveils $10B Buyback

Semiconductor giant Broadcom reports strong Q1 earnings and provides bullish AI revenue guidance.

Mar. 8, 2026 at 1:06pm

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Broadcom Inc. (NASDAQ:AVGO) reported strong Q1 2026 earnings, with revenue of $19.31 billion and adjusted EPS of $2.05. The company saw a surge in AI semiconductor sales, which were up around 106% to about $8.4 billion. Broadcom also provided aggressive AI revenue visibility, with CEO Hock Tan stating that AI chip sales could be 'significantly' above $100 billion by 2027. Additionally, the company unveiled a $10 billion share buyback program, signaling confidence in the business. The report was met with multiple analyst upgrades and higher price targets, though the software segment showed only 1% revenue growth, cited as a drag on overall results.

Why it matters

Broadcom's strong performance in AI chips and the aggressive long-term guidance underscore the company's position as a major non-GPU AI supplier. The buyback program also demonstrates Broadcom's financial strength and commitment to shareholder returns. However, the soft spot in the software segment, which includes VMware, raises some concerns about the company's diversification efforts.

The details

Broadcom reported a 29.5% year-over-year increase in revenue, driven by the surge in AI semiconductor sales. The company's AI chip sales now account for around $8.4 billion, up 106% from the prior year. Broadcom also provided bullish long-term guidance, with CEO Hock Tan stating that AI chip sales could be 'significantly' above $100 billion by 2027. The $10 billion buyback program is expected to support earnings per share and signal confidence in the business at current levels. However, the software segment, which includes VMware, showed only 1% revenue growth, cited as a drag on overall results.

  • Broadcom reported Q1 2026 earnings on March 4, 2026.
  • The $10 billion buyback program was unveiled on March 4, 2026.

The players

Broadcom Inc.

A global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions for a broad range of markets, including wired and wireless communications, enterprise and cloud storage, and networking.

Hock Tan

The CEO of Broadcom, who provided the bullish long-term guidance on AI chip sales.

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What’s next

Broadcom's performance and guidance will be closely watched by investors and analysts as the company navigates the evolving AI semiconductor market. The company's ability to maintain its momentum in AI chips while addressing the softer software segment will be key to its long-term success.

The takeaway

Broadcom's strong AI chip sales and bullish long-term guidance underscore its position as a major player in the non-GPU AI semiconductor market. The $10 billion buyback program also demonstrates the company's financial strength and commitment to shareholder returns. However, the soft spot in the software segment, which includes VMware, remains a concern and will require careful attention from Broadcom's management.