Broadcom’s AI Engine Powers Record Quarter and $16 Billion Forecast, With Google Pact Locked Through 2031

Broadcom posts $10.8B in AI chip sales for Q2 2026, up 143% YoY; forecasts $16B in Q3 with over 200% growth. Total revenue hits $22.2B, up 48%.

Broadcom has blown past expectations with its latest quarterly earnings, delivering chip revenue from artificial intelligence that has more than doubled and setting a target that implies the pace of growth will only accelerate. The semiconductor giant booked $10.8 billion in AI-related sales for its second fiscal quarter of 2026 — a 143% surge from a year earlier — and now projects that figure will leap to $16.0 billion in the current quarter, representing year-on-year growth of over 200%.

Total revenue for the fiscal second quarter hit $22.2 billion, up 48% from the prior year, while free cash flow reached $10.3 billion, or 46% of revenue. For the third quarter, management sees overall sales climbing to roughly $29.4 billion, a jump of 84%.

The blistering AI expansion is underpinned by deep, long-term relationships with some of the biggest names in technology. Broadcom serves as the primary design partner for Google’s custom tensor processing units across generations v8 through v11, a five-year contract signed in early 2026 that locks in revenue visibility through 2031. Recent chatter about potential delays to Google’s TPU v9 program — built on 2-nanometer technology — unsettled some investors, but JPMorgan analyst Harlan Sur quickly dismissed those concerns. He noted that Broadcom’s production ramp for 2028 remains on schedule and that the company holds a lead of more than 18 months over any would-be rival in custom chip development. Sur maintains an “Overweight” rating and a $580 price target on the stock.

Beyond Google, Broadcom’s custom ASIC pipeline includes at least six major AI-model developers, among them Anthropic, OpenAI and Meta. That diversified client base, combined with the Google pact, has kept analyst ratings squarely in “Strong Buy” and “Overweight” territory.

The company also rewarded shareholders with a quarterly dividend of $0.65 per share, payable on June 30. The ex-dividend date was June 22, which helps explain a 1.5% dip in the stock to €353.70 on that day. Nevertheless, the shares closed the preceding week up 5.54% at €359.05. Year to date, Broadcom has gained roughly 19% to 21% depending on the reference point, and the stock trades about 14% above its 200-day moving average while sitting almost exactly on its 50-day average of €354.

Institutional ownership stands at 76% of shares outstanding, with Vanguard, BlackRock and State Street among the largest holders. The Malaysian sovereign wealth fund EPF recently acquired around 1.5 million shares, making Broadcom its fifth-largest position.

Despite the strong run, the stock remains roughly 16% to 18% below its all-time high of €429.60 set in early June. The path back to those levels hinges squarely on whether Broadcom can deliver on its ambitious third-quarter AI revenue target — a $16 billion milestone that would test both execution and margins in a red-hot market.