Broadcom‘s (NASDAQ:AVGO) AI machine is running at a pace that makes even the most bullish semiconductor forecasts look conservative.

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The company reported $8.4 billion in AI semiconductor revenue in Q1 FY2026, up 106% year over year, and that wasn’t even the headline. 

CEO Hock Tan guided Q2 AI revenue to $10.7 billion, a figure that, annualized, puts Broadcom on track for more than $40 billion in AI chip sales this fiscal year alone. 

Consider that the entire AI semiconductor market barely existed on Broadcom’s income statement three years ago.

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The foundation for the growth is custom silicon. Broadcom builds application-specific accelerators, known as XPUs, tailored precisely to the workload demands of individual hyperscalers. 

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