Broadcom Poised to Join Microsoft in $3 Trillion Club

Broadcom is on track to join Microsoft in the $3 trillion market cap club, according to analysts. The company's custom AI processors and networking chips have driven a 39% year-over-year revenue increase in the first six months of fiscal 2026, with an expected 84% jump in the recently concluded fiscal Q3. Broadcom anticipates its AI revenue will exceed $100 billion next fiscal year, translating to a significant uptick in quarterly revenue run rate compared to this year.

The company's long-term agreements with major AI companies such as Anthropic, Meta Platforms, OpenAI, and Alphabet's Google will play a central role in accelerating growth. Broadcom is confident of maintaining its robust AI revenue growth in fiscal 2028, thanks to the multi-year agreements it has in place with six core customers.

Analysts expect Broadcom's revenue to jump by more than two times in just two years, driven by the custom AI chip market's expected $308 billion revenue in 2035 and the data center optical interconnect market's projected growth of 10x between 2024 and 2030. With earnings potentially increasing by 70% in the current fiscal year to $11.63 per share, Broadcom stock is poised for significant growth.