Broadcom and Marvell Report Surge in AI Semiconductor Revenue

Broadcom Inc. reported record second-quarter fiscal 2026 revenue of $22.2 billion, representing a 48% year-over-year increase. This growth was primarily driven by a 143% surge in artificial intelligence semiconductor revenue, which reached $10.8 billion. The company expects AI semiconductor revenue to climb to $16 billion in the third quarter, supported by multi-generation TPU work with Google, a deployment for OpenAI, and a Meta MTIA program. Additionally, the integration of VMware contributed $7.2 billion to the total revenue.

Broadcom maintains a low-capital expenditure model by outsourcing 95% of its wafer production to Taiwan Semiconductor Manufacturing. However, the company faces a potential financing risk of up to $29 billion linked to AI computing racks leased to a single customer.

Marvell Technology also reported strong growth, with quarterly revenue reaching $2.418 billion. Data center revenue accounted for 76% of that total, amounting to $1.83 billion. Based on the success of its optical interconnects and a photonic fabric selected by a Tier 1 hyperscaler, Marvell raised its fiscal 2028 revenue outlook to approximately $16.5 billion.

Other industry players reported similar momentum. Space Exploration Technologies saw revenue rise 92% to $7.8 billion following its record-breaking June 2026 IPO. Meanwhile, Micron Technology and Sandisk reported gross margins exceeding 84% and signed multiyear customer agreements extending through 2028 and 2030 to stabilize future profits.