"The data center build-out is lasting longer than even the optimists priced in last year. Hyperscalers keep raising their commitments, with Anthropic ballooning toward positive cash flow and chronically short on compute."
"AI semiconductor revenue ran from $4.40 billion in Q2 FY25 to $8.40 billion in Q1 FY26, up 106% year over year, with Q2 guidance at $10.7 billion."
"Broadcom generated $8.01 billion of free cash flow in Q1 FY26, representing 41% of revenue, and returned $10.9 billion to shareholders, including a fresh $10 billion repurchase program."
Broadcom's stock is experiencing renewed momentum as the data center build-out continues to exceed expectations. Hyperscalers are increasing their commitments, with notable growth from Anthropic, which has tripled its compute order in a year. AI semiconductor revenue has shown remarkable growth, with projections indicating over $100 billion in revenue by 2027. The company generated substantial free cash flow and returned significant capital to shareholders, including a new buyback program and a dividend increase, reflecting strong financial health and confidence in future demand.
Read at 24/7 Wall St.
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