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Broadcom Stock Surges Ahead of Sept. 2 Earnings as AI Chip Bets Go All In
Broadcom shares jumped nearly 5% as Wall Street bets big on the chipmaker's AI semiconductor ramp — with the company itself projecting AI revenue to more than triple this quarter.
Broadcom shares jumped 4.5% Thursday, closing at $371.54, as investors piled back into AI-linked chip stocks ahead of the company's next earnings report, due after market close on September 2.
The rally tracked a broader chip-sector bounce fueled by Nvidia's own bullish AI infrastructure spending outlook earlier in the week, according to market data compiled by Ad-Hoc News. Broadcom has already told investors to expect fiscal third-quarter revenue of roughly $29.4 billion — an 84% jump from a year earlier — with AI semiconductor revenue alone guided to hit $16 billion for the quarter, more than triple where it stood a year ago.
The AI Backlog Bet
Management has stood by a full-year 2026 AI semiconductor revenue target of $56 billion, and has told analysts to expect that figure to blow past $100 billion in 2027, according to reporting on the company's Q3 earnings-date announcement. That kind of forward guidance has turned Broadcom into one of the most closely watched proxies for whether the AI infrastructure boom has real staying power, or is running ahead of actual demand.
"AI SEMICONDUCTOR REVENUE GUIDED TO $16 BILLION FOR THE QUARTER — MORE THAN TRIPLE A YEAR AGO."
Adding fuel to the optimism: OpenAI and Broadcom this week jointly unveiled "Jalapeno," a custom AI inference chip built in under nine months. In head-to-head testing, OpenAI said the chip delivered 1.5x to 1.9x more AI throughput per watt and cut end-to-end latency by 1.7x to 3.6x compared with existing systems across several large language models, according to OpenAI's own announcement. The company plans to begin deploying the chip in its own infrastructure by the end of 2026.
Not every signal has been rosy. Some analysts have flagged softer growth in Broadcom's VMware software business even as its AI chip unit surges, and the stock remains below its all-time peak. Wall Street will get its clearest answer yet on whether the AI backlog is translating into real cash when Broadcom reports next week — a session that will double as a referendum on the broader AI trade heading into the fall.