Broadcom says AI chip demand drove a strong quarter, expects more growth

Broadcom reported a strong third quarter driven by AI silicon demand, including its custom AI accelerator business, and said it expects that growth to keep 'double-doubling.' Its VMware software unit continued to perform steadily alongside the chip business.

Why it matters: Broadcom is one of the few companies besides Nvidia building custom AI accelerators for major cloud customers like Google, so its results serve as a proxy for demand outside Nvidia's GPU ecosystem. Continued strong growth here supports the view that hyperscalers are actively diversifying their AI chip supply rather than relying solely on Nvidia.