Broadcom (AVGO) official guidance

In Q4, we expect capital expenditures of $1.4 billion as we invest in capacity for semiconductors.

Starting with the 1 GW of Ironwood we are deploying in 2026, we expect Anthropic to deploy another 5 GW of TPU v8i in 2027.

Across these three generations, we have line of sight to deploying 3 GW through 2028.

For OpenAI, Jalapeño is on track for the planned deployment of 1.3 GW in 2027.

In 2028, we have line of sight for OpenAI to deploy over 5 GW of Jalapeño and its successor generation of XPU, which would make OpenAI our second-largest XPU customer.

In June, we established the AI XPV Platform in partnership with Apollo and Blackstone to enable more than 20 GW of compute infrastructure for OpenAI and Anthropic by the end of 2028.

Starting with the 1 GW of Ironwood we are deploying in 2026, we expect Anthropic to deploy another 5 GW of TPU v8i in 2027.

In 2028, we have clear line of sight to deliver an incremental 10 GW, even as we expect Google to grow for us.

We expect the Q4 non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.

We expect the non-GAAP tax rate for Q4 and fiscal year 2026 rate to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

We expect the non-GAAP tax rate for Q4 and fiscal year 2026 rate to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025.

As a result, I have to say, we are very much on target to exceed $30 in earnings per share in fiscal 2028.

As the proportion of AI revenue accelerates in Q4, we expect our Q4 consolidated gross margin to be approximately 73%, down from 78% a year ago.

Regardless, we expect Q4 operating margin to be approximately 66%, flat from a year ago, because our strong revenue growth drives substantial operating leverage.

Based on this Q4 guidance, I should say, we expect our fiscal 2026 AI revenue to be $58 billion for the year, up 186% year upon year, and above our prior guidance of $56 million.

In 2027, we have secured the supply to again double AI revenue to approximately $115 billion.

In 2028, we expect the trajectory of growth to continue. We have line of sight for fiscal 2028 AI semiconductor revenue growth to again double to $230 billion.

Within this, we expect Q4 AI semiconductor revenue of $21.7 billion, up over 236% year-on-year.

We expect Q4 infrastructure software revenue of approximately $8.7 billion, up 25% year-on-year.

In Q4, we forecast non-AI semiconductor revenue to be approximately $4.3 billion, again up 5% sequentially.