Broadcom reported Q1 FY2026 revenue of $19.31 billion, up 29.5% year over year, with AI semiconductor sales of $8.40 billion growing 106%. The Semiconductor Solutions segment accounted for 65% of total revenue, while VMware revenue rose 1% year over year. Broadcom expects AI semiconductor revenue to reach $10.7 billion in Q2. TSMC reported April consolidated revenue of $13.07 billion, up 17.5% year over year, with year-to-date sales up 29.9%. TSMC holds about 72% of global foundry market share and produces 3nm and 5nm chips with an operating margin of 58.1%. Broadcom repurchased $7.8 billion of stock and authorized an additional $10 billion buyback, while TSMC’s U.S. expansion and Arizona fabs increase capex and constrain free cash flow.
"Broadcom's Q1 FY2026 revenue hit $19.31 billion, up 29.5% year over year, with AI semiconductor sales reaching $8.40 billion and growing 106%. CEO Hock Tan told investors AI revenue is "accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2." The Semiconductor Solutions segment now makes up 65% of total revenue, while VMware grew just 1% year over year. Software is along for the ride. Custom XPUs are doing the heavy lifting."
"TSMC's April update showed consolidated revenue of $13.07 billion, up 17.5% versus April 2025, with year-to-date sales up 29.9%. The foundry controls roughly 72% of global foundry market share and manufactures the 3nm and 5nm parts that NVIDIA, AMD, Apple, and Broadcom all depend on. Operating margin sits at 58.1%. When every designer fights for the same advanced node capacity, the toll collector wins."
"Broadcom returned cash aggressively last quarter, repurchasing $7.8 billion in stock and authorizing a fresh $10 billion buyback through December 31, 2026. Tan's playbook leans on financial engineering layered over a high-margin chip portfolio. TSMC is doing the opposite. Its U.S. expansion guarantees alone reached $11.01 billion against a $15.10 billion board-approved ceiling, with new fabs spinning up in Arizona."
"That capex intensity drags free cash flow, but it cements TSMC as the only credible manufacturer of the most advanced logic chips for years to come. Broadcom designs custom AI accelerators for a handful of hyperscalers. TSMC fabricates leading-edge chips for nearly every major designer on the planet, including Broadcom itself. Their results tell the same AI story from opposite ends of the supply chain."
Read at 24/7 Wall St.
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