Broadcom Stock Jumped Over 4% After-Hours — And OpenAI May Have Something To Do With It

AI revenue for the third quarter climbed 63% to $5.2 billion, making up roughly 57% of the total semiconductor revenue.
The Broadcom Ink logo is displayed on a mobile phone in this photo illustration in Brussels, Belgium, on September 2, 2025.
The Broadcom Ink logo is displayed on a mobile phone in this photo illustration in Brussels, Belgium, on September 2, 2025. (Photo by Jonathan Raa/NurPhoto via Getty Images)
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Shanthi M·Stocktwits
Published Sep 04, 2025 | 10:38 PM GMT-04
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Chipmaker Broadcom, Inc.’s (AVGO) stock rose over 4.5% in Thursday’s extended trading session as investors cheered its quarterly report and were enthused by remarks about a huge order from a client for custom chips. 

Retail sentiment toward Broadcom stock also improved further in the ‘extremely bullish’ territory (95/100) by late Thursday, and the message volume rose to ‘extremely high’ levels. The stock was among the top five trending equity tickers on the platform late Thursday. The 24-hour message volume change leading up to late Thursday was over 1,000%.

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AVGO sentiment and message volume as of 10:35 p.m. ET, Sept. 5 | source: Stocktwits

Broadcom's revenue clocked a record in the third quarter of the fiscal year 2025, rising 22% year-over-year (YoY) to $16 billion on strong demand for custom artificial intelligence (AI) accelerators, networking, and VMware products. The topline exceeded the $15.82 billion consensus compiled by Fiscal.ai. 

AI revenue for the third quarter climbed 63% to $5.2 billion, making up roughly 57% of the total semiconductor revenue.

President and CEO Hock Tan said, “We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4, delivering eleven consecutive quarters of growth, as our customers continue to strongly invest.”

The company generated a record cash flow of $7 billion, marking 47% YoY growth. Adjusted earnings per share (EPS) for the quarter climbed to $1.69 from $1.24, exceeding the $1.66 consensus estimate.

On the earnings call, Tan stated that bookings remained strong, with the consolidated backlog reaching a record $110 billion, according to a transcript provided by Koyfin.

Broadcom’s board approved a quarterly cash dividend of $0.59 per share, payable on Sept. 30 to shareholders of record at the close of business on Sept. 22.

Looking ahead, Broadcom guided fourth-quarter revenue to about $17.4 billion, while analysts, on average, estimate $17.01 billion. The company estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 67%, flat with the preceding quarter.

Tan said on the earnings call that one of the prospective customers it was working with in the third quarter had released production orders, and that the company had secured over $10 billion in orders for AI racks based on its XPUs. 

XPUs, which stand for Extended Processing Units, are custom chips designed for demanding data center workloads, such as AI and high-performance computing.

A Financial Times report, citing people familiar with the matter, noted that Sam Altman’s OpenAI, the maker of ChatGPT, is preparing to design and produce its own AI chip with help from Broadcom next year. This led to increased speculation that the mystery $10 billion customer for the chipmaker could indeed be OpenAI.

Broadcom stock has gained about 33% year-to-date. The Koyfin-compiled average analysts’ price target for the stock is $307.57, implying less than 1% upside potential.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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