Broadcom shares edged up in extended trading on Wednesday after the chipmaker issued a rosy forecast for the next fiscal year and hinted at growing business with artificial intelligence labs.

Here’s how the company did in comparison with LSEG consensus:

• Earnings per share: $3.32 adjusted vs. $3.24 expected
• Revenue: $29.59 billion vs. $29.36 billion expected

For the fiscal fourth quarter, Broadcom said it expects revenue of $34.8 billion, while analysts were expecting $35.03 billion, according to LSEG.

Broadcom’s revenue increased 86% during the quarter from $15.95 billion a year ago, according to a statement. Net income more than tripled to $13.09 billion, or $2.68 per share, from $4.14 billion, or 85 cents per share a year earlier.

Broadcom has been one of the major winners of the AI boom, designing custom chips for companies including Google, Meta and OpenAI. The stock has jumped by more than sixfold since the end of 2022, coinciding with the emergence of ChatGPT and other generative AI services, pushing its market cap to about $1.8 trillion.

But the shares have lagged the broader indexes this year. As of Wednesday’s close, Broadcom shares had gained about 6% in 2026, while the S&P 500 index is up 12% in the same period.

During the quarter, Broadcom touted the custom Jalapeno chip it developed with OpenAI, while Apple said it would spend more with Broadcom for U.S. chip production.

CEO Hock Tan said on a conference call that Broadcom expects to speed up shipments of Google Ironwood tensor processing units to Anthropic and TPU 8i chips to Google.

He said Broadcom will deliver tens of billions of dollars of processors to Google each year for the next several years.

“Shipments of Jalapeno for OpenAI will continue, and for Meta, we expect production shipments of their custom MTIA accelerator optimized for inference and recommendation at scale,” Tan said.

Broadcom is looking for Anthropic to deploy deploy 5 gigawatts of TPU 8i chips in 2027, with line of sight to deliver another 10 gigawatts, Tan said. Tan said OpenAI is getting ready to tape out its second-generation chip, and the lab is putting together plans with Broadcom for a third version.

He said Broadcom is looking at a 1.3 gigawatt deployment of Jalapeno in 2027, with a line of sight of over 5 gigawatts for Jalapeno and the second generation.

For the 2027 fiscal year, Tan said Broadcom is looking to double AI revenue to $115 billion, with plans to double again to $230 billion in fiscal 2028. The company is on target to produce over $30 in earnings per share, he said. The LSEG consensus for fiscal 2028 adjusted earnings per share was $25.86.

“We are empowering two of our most strategic customers, the leading AI labs, to bridge the gap between their current cash flow and the significant upfront investments required for their businesses,” said Amie Thuener, Broadcom’s finance chief.

Broadcom might provide residual value guarantees that are contingent liabilities to the labs, she said.

“It makes economic sense for Broadcom to invest and enable these guys,” Tan said.

Semiconductor revenue more than tripled to $16.7 billion, exceeding the $15.2 billion average estimate, according to StreetAccount. Broadcom said it generated $8.75 billion from infrastructure software, less than the $8.82 billion consensus among analysts polled by StreetAccount.

WATCH: What to expect from Broadcom’s Q3