Broadcom reports fiscal third-quarter results on September 2, with investors watching whether AI semiconductor revenue can clear the company's own $16 billion guidance. Google's new chip agreement with Marvell has raised questions about Broadcom's future share of custom AI silicon, even as fresh OpenAI and debt-financing deals extend its pipeline toward 2027.
Broadcom reports fiscal Q3 results on Wednesday, September 2, after guiding for AI semiconductor revenue of $16 billion for the quarter, more than double the prior-year figure. That target follows a quarter in which Broadcom's own AI forecast fell fractionally short of expectations, so beating it again matters more than usual.
A demanding bar after a tough prior quarter
Broadcom generated record revenue of $22.2 billion in fiscal Q2, up 48% year-on-year. AI semiconductor revenue surged 143% to $10.8 billion in the same quarter. Yet Q2 revenue came in slightly below the Wall Street estimate, and the $16 billion Q3 AI forecast was also fractionally below analysts' expectations, so shares fell sharply at the time. Management has since guided for total Q3 revenue of around $29.4 billion, implying growth of 84% year-on-year.
Google's deal with Marvell complicates the picture
Broadcom has been Google's main custom AI chip partner, but Google's recent agreement with Marvell has raised questions about whether Broadcom's share of that business could shrink. The deal gives Google the right to acquire up to $12.2 billion of Marvell shares. Broadcom shares fell more than 5% when the agreement was announced. Management will need to reassure investors that its six-customer pipeline, which also includes Meta, Anthropic and OpenAI, remains intact.
OpenAI and new debt plans extend the runway
Broadcom and OpenAI have announced a multi-year collaboration covering 10 gigawatts of OpenAI-designed AI accelerators, with deployments scheduled to begin in the second half of 2026. Reuters reported last week that Broadcom is exploring raising more than $60 billion of debt, potentially reaching as much as $100 billion, through a financing structure meant to support AI-focused customers including Anthropic and OpenAI. That follows a separate $35 billion financing arrangement with Blackstone and Apollo linked to Anthropic's computing capacity. Broadcom has reiterated its expectation that AI semiconductor revenue will exceed $100 billion in fiscal 2027.
VMware still has to deliver
Away from AI chips, Broadcom's infrastructure software unit generated $7.18 billion in revenue in Q2, up 9% year-on-year, considerably slower growth than the semiconductor business. As AI chips take up a larger share of the revenue mix, investors will watch gross margins, operating margins and free cash flow alongside the headline growth figures.
The September 2 results will show whether Broadcom's AI backlog can keep outrunning its own guidance, or whether the Google-Marvell deal marks the start of a tougher stretch.
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