Broadcom's Custom Chips Dominate AI Play Amid Cisco Growth
Cisco Systems and Broadcom are two tech companies that have seen significant growth in their AI-heavy quarters. Cisco's Q4 FY2026 revenue reached $17.3 billion, driven by an enterprise networking refresh. The company's networking segment grew 28% year-over-year, with product orders up 40%. In contrast, Broadcom's Q2 print showed $22.2 billion in revenue, fueled by a hyperscaler-fueled AI silicon surge.
Broadcom's custom XPUs for Google, Meta, OpenAI, and Anthropic are major contributors to its success. The company's AI semiconductor revenue was $10.8 billion, up 143% year-over-year, with Q3 guided to $16 billion. CEO Hock Tan expects AI bookings above $30 billion and a fiscal 2027 AI target in excess of $100 billion.
Cisco's strength lies in its breadth, with Splunk adding over 280 new logos and campus orders climbing 20%. Broadcom's strength is its depth, with Tan calling demand 'simply insatiable' and visibility running to 2028. However, the next test for Broadcom will be whether its bookings convert into revenue.