Broadcom Stock Jumps After Hours As Strong Q4 And Surging AI Chip Demand Drive Upbeat Outlook

• The company reported Q4 adjusted earnings per share of $1.95, above a Wall Street estimate of $1.87, according to data from Fiscal AI. 
• The company now expects $19.1 billion in sales in the first quarter of fiscal year 2026, above an analyst estimate of $18.3 billion. 
• Broadcom, like Nvidia, has greatly benefited from the AI boom with its abilities in designing custom AI chips.

Shares of Broadcom Inc (AVGO) rose 2.3% after hours on Thursday after the company reported fourth quarter (Q4) earnings that beat Wall Street expectations and issued an upbeat outlook for the first quarter of 2026.

The company reported Q4 adjusted earnings per share of $1.95, above a Wall Street estimate of $1.87, according to data from Fiscal AI.

Revenue for the three months came in at $18.02 billion, marking a growth of 28% year-over-year, and above an analyst estimate of $17.46 billion.

Q1 2026 Forecast

The company now expects $19.1 billion in sales in the first quarter of fiscal year 2026, above an analyst estimate of $18.3 billion, on the back of strong AI chip and semiconductor demand.

"We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches,” CEO Hock Tan said in a statement. The company further expects first quarter core profit to be 67% of projected revenue.

However, in the non-AI semiconductor segment, the company expects revenue to be about $4.1 billion in the quarter, flat from a year ago. “Directionally, we expect AI revenue to continue to accelerate and drive most of our growth, and non-AI semiconductor revenue to be stable,” the CEO said.

AI Boom Aids Stock Rally

Broadcom, like Nvidia, has greatly benefited from the AI boom with its abilities in designing custom AI chips. AVGO stock has gained over 75% this year and by about 122% over the past 12 months.

Tan said on Thursday that the company now has about $73 billion in AI backlog, almost half of the company’s consolidated backlog of $162 billion. The company expects to deliver the AI backlog over the next 18 months.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AVGO stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user sounded optimistic about the stock hitting $500 in Friday trading.

Another sounded hopes for a Microsoft partnership.

The company inked a partnership with OpenAI in October to develop custom chips.

Also See: Costco Stock Dips After Hours Despite Strong Q1 And Holiday Momentum — Retail Bulls Eye Rally Next Week

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