Broadcom still in the AI sweet spot but scrutiny is building

4 June 2026

If you are covering Broadcom's latest results, please see the following comment from Ben Barringer, head of technology research at Quilter Cheviot:

A solid set of numbers, but not a blowout, and there are a few niggles beneath the surface.

Revenue growth of 48% with semiconductors up 79% shows just how strong the AI demand cycle is for Broadcom. That puts them exactly where you want to be, tied into the infrastructure build-out at Google , Anthropic and OpenAI.

But there are some question marks. The competitive backdrop is starting to shift, with Google bringing MediaTek into the mix, which suggests Broadcom may not retain the same level of share going forward.

At the same time, there were no obvious new customer wins, so while demand is strong, it is still concentrated. That leaves the story heavily reliant on a small number of hyperscalers continuing to spend.

Margins are another area to watch. Broadcom is effectively two businesses, a faster-growing chip division and a higher-margin infrastructure software arm. The current mix is shifting towards semiconductors as AI demand accelerates, but those revenues carry lower margins than software, so that shift is diluting profitability and starting to put some pressure through on overall margins.

So overall, it is a good set of numbers and they are in the right place structurally with AI, but it does feel like expectations were already high. The long-term story remains intact, but there is a bit more scrutiny now on share, mix and how sustainable that growth really is.