The US government has introduced new import tariffs on advanced AI chips from Nvidia and AMD, with the aim of channelling part of the proceeds from sales to China directly into the US treasury. According to the Financial Times, the measure is part of President Donald Trump's broader trade and industrial policy, which explicitly intertwines economic transactions and national security.
The AI chipmaker reported record revenue of $16 billion, a 22% year-over-year increase, driven by a 63% surge in AI semiconductor revenue to $5.2 billion. Its infrastructure software segment, bolstered by the 2023 VMware acquisition, grew 43% to $6.79 billion. Broadcom's adjusted EBITDA hit $10.7 billion, up 30% from last year, reflecting robust profitability. The company also raised its Q4 revenue guidance to $17.4 billion, surpassing Wall Street's $17.02 billion estimate, with AI revenue expected to reach $6.2 billion.
Broadcom ( NASDAQ: AVGO) straddles two engines heading into results: accelerating AI semiconductors and a fast-maturing VMware subscription base. Last quarter, AVGO delivered a modest EPS beat and reiterated that AI demand-especially networking and custom XPUs-will carry through 2026, while software ARR expands with VCF conversions. Broadcom has beat analyst expectations over the past 4 quarters and the share price, up 62% in the past 6 months, reflects that outperformance.
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