Broadcom posts strong earnings as AI growth outpaces stock gains

Broadcom topped July-quarter expectations with revenue of $29.6 billion (up 86% year over year) and adjusted EPS of $3.32, guiding to about $34.8 billion for the October quarter; management sees AI-chip revenue reaching $21.7 billion in fiscal 2027 and $230 billion in fiscal 2028, with Anthropic slated as the largest custom-chip customer for 2027–28. Despite the beat, the stock fell about 1% after hours and is up just 6% this year, lagging the SOX’s roughly 60% rise. The company plans about $1.4 billion in capex to expand semiconductor capacity to support AI growth, underscoring optimism about AI but a muted immediate market reaction.