revenue $22.2B, net income $9.31B. Broadcom's AI surge drives 48% revenue growth, but new leasing models and TSMC dependence raise risk

Filed June 9, 2026 · Period ending May 3, 2026 · Compared to 10-Q Jun 11, 2025 · ~2 min read

Key Changes

• high

  Quarterly revenue jumped 48% YoY to $22.2B, driven by 79% growth in semiconductor solutions from custom AI accelerators and networking products. Operating margin expanded to 49% from 39%, showing strong leverage as AI revenue scales.

  MD&A: Revenue & Margins verify on EDGAR →
• high

  Top AI customers now demand Broadcom purchase and lease full AI racks/systems instead of selling chips outright, shifting inventory and credit risk onto the company and potentially reducing free cash flow and profitability.

  Risk Factors: AI Financing Models verify on EDGAR →
• high

  Single-distributor concentration rose from 29% to 42% of revenue; 95% of wafers now come from TSMC, which could prioritize competitors or raise prices. Over 75% of materials sourced from just five suppliers.

  Risk Factors: Supplier Concentration verify on EDGAR →