Broadcom Stock Surges on Earnings Beat and $10B AI Chip Deal

Broadcom shares jumped 4% after surpassing Wall Street estimates and securing a $10 billion custom AI chip order from a new cloud client. The semiconductor giant reported adjusted earnings of $1.69 per share against $1.65 expected, with revenue hitting $15.96 billion versus $15.83 billion forecasts.

CEO Hock Tan revealed production orders from a fourth cloud customer for XPU processors, with shipments beginning in 2026. The deal immediately boosted Broadcom's AI revenue projections, which reached $5.2 billion this quarter—a 63% year-over-year increase. The company now anticipates $6.2 billion in AI-related sales for Q4.

While not directly cryptocurrency-related, Broadcom's AI chip dominance signals growing infrastructure demand that could benefit blockchain compute networks. The company's networking expertise positions it as a potential enabler for decentralized AI applications on chains like ETH, SOL, and DOT.