Broadcom's AI Revenue Now Dominated by Six Major Customers
Broadcom reports that AI semiconductors account for roughly half of its revenue, with custom accelerators sold to six core clients, raising concerns about customer concentration.
Broadcom said AI semiconductors made up 49% of its fiscal Q2 2026 revenue, amounting to $22.2 billion, and it projects the share to rise to about 54% in fiscal Q3 2026 with $16 billion of AI semiconductor sales expected. The company’s custom accelerator products are supplied to six primary customers, including a long-term agreement for multiple generations of TPUs, a contract to deliver 1.3 gigawatts for OpenAI by 2027, and a deployment plan for Meta through 2028. Management noted that AI bookings reached $30 billion in the quarter, while actual shipments were $10.8 billion, and it expects visibility through 2028.
Broadcom’s networking segment, which does not rely on its own accelerators, contributed nearly 40% of the AI line in Q2 2026, but the company expects that proportion to fall toward 30% as AI sales grow. Analysts highlighted that the reliance on a small group of buyers creates a concentration risk distinct from a broader customer base.
The stock has fallen about 15% over the past three months and now trades at roughly 22.4 times sales, near a decade-high multiple. While Broadcom’s revenue growth has outpaced the S&P 500 over the past year, investors are cautioned to assess whether the limited customer list could affect future performance.