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Broadcom Beats Earnings as AI Revenue Doubles on Custom XPU Demand from Google and Meta

Canopy Hardware

Broadcom reported first-quarter fiscal 2026 earnings that beat analyst expectations, with AI-related revenue more than doubling year-over-year, driven primarily by surging orders for custom AI accelerators (XPUs) from hyperscalers including Google and Meta, along with continued strong VMware integration revenues. The results mark Broadcom as the second-largest AI chip revenue generator behind Nvidia, with its XPU business growing faster than anticipated as hyperscalers invest in custom silicon to reduce dependence on Nvidia's H100 and H200 GPUs. The earnings report also reinforced guidance for continued AI infrastructure spending through the rest of 2026 fiscal year.

Key Takeaways

  • Broadcom FQ1 2026: AI revenue doubled YoY; beat analyst estimates on EPS and revenue — driven by XPU (custom AI accelerator) orders from Google TPU and Meta custom chip programs\n· Broadcom XPU business signals that hyperscaler custom silicon is growing rapidly alongside Nvidia GPU demand; VMware segment also contributed, with VMware Cloud Foundation adoption ahead of schedule\n· Guidance raised for FQ2 2026; Broadcom CEO Hock Tan expects AI infrastructure spending to remain elevated through the full fiscal year — covered by CNBC, Bloomberg, and Techmeme on March 5–6, 2026

Original source: CNBC