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Today at a glance:
📈 Broadcom: AI Target Jumps
💻 Dell: Margins Catch Up
📡 HPE: Juniper Starts Paying Off
🌱 MongoDB: Enterprise Advanced Roars Back
☁️ Zscaler: Usage Revenue Takes Off
🌐 Samsara: Large Deals Accelerate
🧘🏻 Lululemon: Leggings Lose Ground
✍️ DocuSign: IAM Hits 15% of ARR
⚡️ NIO: Margins Hold Up
🤖 UiPath: AI Reaches 18 of Top 20 Deals
🛠️ GitLab: Bookings Break Out
📝 Asana: AI Hits 25% of New ARR
1. 📈 Broadcom: AI Target Jumps
Broadcom Q3 revenue (July quarter) surged 86% Y/Y to $29.6 billion ($160 million beat), with non-GAAP EPS of $3.32 ($0.08 beat).
Semiconductor solutions as a whole grew 127% to $20.8 billion, driven by AI semiconductor revenue, which jumped 221% Y/Y and 54% Q/Q to $16.7 billion, exceeding the $16 billion outlook from last quarter.
Infrastructure software also accelerated to 29% growth at $8.8 billion.
The bigger news was the forward reset for next year. Broadcom now expects $115 billion of AI semiconductor revenue in FY27, up from the $100 billion target that disappointed investors in Q2, followed by an extraordinary $230 billion in FY28. Q4 AI revenue is expected to reach $21.7 billion, up 236% Y/Y, another acceleration.
The customer mix includes the usual suspects. Anthropic is expected to become Broadcom’s largest custom XPU customer in FY27, with OpenAI potentially second, while Google remains a multi-tens-of-billions annual business. Meta is also ramping across multiple chip generations. Management says demand from its four largest AI customers continues to exceed what Broadcom can physically supply.
That bottleneck is prompting more vertical integration. Broadcom is bringing substrate production online in Singapore in FY27 while scaling networking alongside custom compute, including its new 200 Tbps Tomahawk 7 Ethernet switch.
Bottom Line: Q2 left investors wondering whether management was sandbagging with its $100 billion FY27 AI target. Now we know, with a $15 billion raise after just one quarter. The $230 billion FY28 outlook implies AI semiconductor revenue nearly quadrupling from FY26 in just two years. Now it’s all about how quickly Broadcom can secure enough capacity to satisfy that demand.