One Reason I Can't Stop Buying Broadcom Stock

"AI semiconductor revenue grew 106% year-on-year to $8.4 billion in fiscal Q1 2026, and management guided Q2 AI revenue to $10.7 billion. Hock Tan said it plainly on the call: “we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027. We have also secured the supply chain required to achieve this.”"

"The customer list is no longer a guess. Google’s seventh-generation Ironwood TPU, Anthropic at 1 gigawatt in 2026 surging past 3 gigawatts in 2027, Meta’s MTIA scaling to multiple gigawatt s, and OpenAI as a newly disclosed sixth customer expected to deploy in volume in 2027 at over 1 gigawatt. That is a multi-year backlog."

"Free cash flow hit $8.01 billion in Q1, which is 41% of revenue, on adjusted EBITDA of $13.13 billion at a 68% margin. Fiscal 2025 produced $26.91 billion in free cash flow. Management is returning it aggressively. Broadcom repurchased $7.8 billion of stock in Q1, authorized a new $10 billion buyback through year-end 2026, and raised the dividend 10% in December 2025 to $0.65 per share."

"“We have been in the silicon business for over 20 years,” Tan said, and Broadcom has fully secured capacity through 2028 on the leading-edge wafers, HBM, and substrates that every ri"

AI semiconductor revenue grew 106% year-on-year to $8.4 billion in fiscal Q1 2026, and Q2 AI revenue guidance reached $10.7 billion. Management stated there is line of sight to achieve AI revenue from chips, just chips, exceeding $100 billion in 2027, supported by secured supply chain capacity. Customer demand is described as concrete, including Google’s seventh-generation Ironwood TPU, Anthropic scaling from 1 gigawatt in 2026 to over 3 gigawatts in 2027, Meta’s MTIA scaling to multiple gigawatts, and OpenAI as a newly disclosed sixth customer expected to deploy in volume in 2027 at over 1 gigawatt. Free cash flow reached $8.01 billion in Q1, and fiscal 2025 produced $26.91 billion. Broadcom repurchased $7.8 billion of stock in Q1, authorized an additional $10 billion buyback through year-end 2026, and raised the dividend 10% in December 2025 to $0.65 per share.

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