Broadcom Inc. ($AVGO) Stock: Q3 2025 Earnings Soar on AI Demand and Record Revenue

TLDR

• Broadcom stock trades at $323 pre-market after closing at $306.10.
• Q3 2025 revenue hits $16B, up 22% YoY, driven by AI semiconductor growth.
• AI revenue climbs 63% YoY to $5.2B, marking 10 straight quarters of gains.
• The company declares $0.59 dividend payable on September 30, 2025.
• Q4 guidance projects $17.4B revenue, with AI revenue expected to reach $6.2B.

Broadcom Inc. (NASDAQ: AVGO) closed at $306.10 on September 4, 2025, gaining 1.23% on the day, and traded at $323 in pre-market, up 5.52%.

Broadcom Inc. (AVGO)

The move follows the company’s fiscal Q3 2025 earnings release, dated September 4, which showcased record results fueled by AI semiconductor demand.

The company reported adjusted earnings of $1.69 per share, above analyst estimates of $1.65 and up from $1.24 a year ago. Revenue rose 22% year over year to $15.95 billion, topping expectations of $15.82 billion. Net income came in at $4.14 billion, while adjusted EBITDA climbed 30% to $10.7 billion, representing 67% of revenue.

AI Semiconductor Growth

Broadcom’s AI semiconductor business delivered standout performance, with revenue surging 63% year over year to $5.2 billion. This marks the 10th consecutive quarter of robust AI-driven growth, supported by demand for XPUs and large-scale cloud deployments. The company also secured over $10 billion in AI rig orders, highlighting sustained customer investment.

Semiconductor solutions revenue reached $9.2 billion, up 26% year on year, while infrastructure software revenue grew 17% to $6.8 billion, bolstered by the release of VMware Cloud Foundation version 9.0.

Dividend and Cash Flow

Broadcom’s Board of Directors declared a quarterly cash dividend of $0.59 per share for Q3, payable September 30, 2025, to shareholders of record on September 22. The company generated $7 billion in free cash flow, representing 44% of revenue, and paid $2.8 billion in dividends during the quarter.

Capital expenditures were modest at $142 million, underscoring efficient operations alongside strong cash generation.

Outlook and Forecast

Looking ahead, Broadcom projected Q4 revenue of approximately $17.4 billion, up 24% year over year, with adjusted EBITDA expected to remain at 67% of revenue. AI semiconductor revenue is forecast to reach $6.2 billion, representing 66% year-over-year growth.

Despite the strong outlook, management acknowledged headwinds in non-AI semiconductors, which remain sluggish and are projected to decline 7–8% for fiscal 2025. Gross margins are also expected to ease by about 70 basis points in Q4 due to a higher mix of XPUs and wireless revenue.

Long-Term Performance

Broadcom’s stock has significantly outperformed the market. As of September 4, 2025, AVGO posted a 32.74% YTD return, 100.87% over one year, and a staggering 548.42% over three years. By contrast, the S&P 500 gained 10.55% YTD, 17.79% in one year, and 65.69% in three years.

With AI revenue continuing to scale and infrastructure software momentum strengthening, Broadcom remains positioned for sustained growth, though recovery in traditional semiconductor markets may take until mid to late 2026.

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