Broadcom’s AVGO Semiconductor revenues are benefiting from strong demand for XPUs, which are a type of application-specific integrated circuit (ASIC) necessary to train Generative AI (Gen AI) models. In the fourth quarter of fiscal 2025, AI revenues surged 74% year over year to $6.5 billion. XPU adoption accelerated in the reported quarter as enterprises continue to use these to train their large language models and monetize their platforms through inference APIs and applications. Alphabet and Meta Platforms are major users of these XPUs.
AVGO’s expanding clientele, which now includes Anthropic, is driving growth. In the third quarter of fiscal 2025, Broadcom received a $10 billion order to sell Alphabet’s latest TPU Ironwood racks to Anthropic. In the fourth quarter of fiscal 2025, Broadcom received an additional order worth $11 billion from the same customer. The company’s current order backlog for AI switches exceeds $10 billion as AVGO’s latest 102-terabit per second Tomahawk 6 switch continues to gain traction. AVGO now expects first-quarter fiscal 2026 AI revenues to double year over year to $8.2 billion.
AVGO’s networking portfolio is gaining from strong demand for Tomahawk 6 products, as well as the Jericho 4 Ethernet fabric router. Broadcom also has a rich partner base that includes the likes of OpenAI, Walmart, NVIDIA, Canonical, Arista Networks, Alphabet, Dell Technologies, Meta Platform, Juniper and Supermicro, among others. AVGO expects first-quarter fiscal 2026 Semiconductor revenues of $12.3 billion, suggesting 50% year-over-year growth. Infrastructure Software revenues are expected to grow 2% year over year to $6.8 billion.
Broadcom is a major player in the semiconductor market, but is facing stiff competition from NVIDIA NVDA and Marvell Technology MRVL.
NVIDIA is benefiting from the strong growth of AI and high-performance accelerated computing. The growing demand for Gen AI and large language models using GPUs based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. In the third quarter of fiscal 2026, revenues from Data Center (accounted for 89.8% of NVDA revenues) jumped 66% year over year and 25% sequentially to $51.22 billion.
Marvell Technology is benefiting from the strong demand environment across the data center end market. MRVL’s data center end-market revenues jumped 39% year over year in the third quarter of fiscal 2026, propelled by strong growth across AI-driven demand for custom XPU silicon and electro-optics interconnect products. Marvell Technology’s AI-driven custom silicon business has secured more than 20 multi-generational XPU and XPU-attach socket wins. MRVL’s design pipeline has expanded to more than 50 opportunities worth $75 billion, underscoring hyperscalers’ growing reliance on Marvell’s differentiated capabilities.
