Semiconductor SolutionsNarrow moat

Broadcom (AVGO) — moat facet

Four fifths of the segment is now AI, and the fifth that is not has sat at about $4.1 billion a quarter for six quarters.

Broadcom's semiconductor segment sold $20,839 million in the quarter to 2 August 2026, up 127% on a year earlier1 — more than the entire company took in any quarter before fiscal 2026. Almost all of that is one product cycle. Management put AI semiconductor revenue at $16.7 billion for the quarter, up 221% year on year and 54% on the quarter before2, which leaves about $4.1 billion for everything else3 — roughly what the non-AI business has produced in every quarter for six4. This is one reported segment containing two businesses, and only one of them is moving.

Semiconductor revenue: nine months of FY2026 against earlier full years ($B)9M FY2026$48.4BFY2025$36.9BFY2023$28.2BFY2020$17.3BBroadcom Forms 10-K FY2021, FY2023 and FY2025 and Form 10-Q, 2 August 2026
Three quarters of fiscal 2026 sold more than any complete year in the segment history, and the increase alone was larger than all of fiscal 2020.

The contents are broad and the disclosure is not. Broadcom's AI solutions are "custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices" and optical components, "as well as racks and systems based on our XPUs"5, and the segment sells into five named end markets: Networking Connectivity, Wireless Device Connectivity, Servers and Storage Systems, Broadband and Industrial6. Broadcom publishes no revenue split across those five. An investor gets the segment total and the AI figure management chooses to give on the call, and nothing in between — so the size of the wireless franchise that once made Apple a named 20% customer7 is now an inference rather than a disclosure.

The history is nine flat years and then a step. The segment took $17,491 million in fiscal 2017 and $18,934 million in fiscal 2018, then fell 8% to $17,368 million in fiscal 20198 and again to $17,267 million in fiscal 20209. Four years of ordinary growth carried it to $28,182 million by fiscal 202310 and $36,858 million by fiscal 202511. Then, in three quarters of fiscal 2026, it sold $48,363 million12 — more in nine months than in the whole of any prior year, and an increase over the comparable period larger than the segment's entire fiscal 2020 revenue.

How it is paid has changed with it. The traditional business sells parts against design wins locked in years ahead, which is the source of the visibility argued on the moat pages. The new business increasingly sells whole racks and systems, and Broadcom has warned shareholders what that does: selling or leasing AI racks "will likely increase our operating margin but compress or lower future gross margin"13. A company telling its owners in advance that a larger business will look worse on one line is being unusually straight about the mix.

So far the margin has gone the other way. Segment operating margin was 49.7% in fiscal 2020 and 58.5% in fiscal 202314, eased to 57.6% in fiscal 2025 as the rack content arrived15, and then reached 61.3% in the latest quarter16 — the highest the segment has recorded, on revenue that more than doubled. Fabless economics do that: Broadcom carried just $2,530 million of net property, plant and equipment against $171,092 million of total assets at the end of fiscal 202517, so volume arrives without a corresponding building. The engineering bill behaves the same way: the segment's own research and development cost $1,006 million in the quarter against $850 million a year earlier18, an 18% increase carrying a 127% one.

What it does have is commitments. Broadcom has promised its own suppliers $126,821 million, of which $72,952 million falls in fiscal 202819: a forward order on capacity that only makes sense if the AI line keeps compounding, placed by a company that sells the result through one door: a single distributor accounted for 50% of all net revenue in the quarter, against 32% for fiscal 2025 as a whole2021. The customer structure behind that figure is argued on the Major Clients pages and is not repeated here.

The measure that tests this page is the one Broadcom strips out of its own commentary. Non-AI semiconductor revenue has sat near $4.1 billion a quarter for six quarters22, and until it moves, the segment has no second engine: every dollar of growth and every point of margin improvement traces to accelerators and networking bought by a handful of buyers for a single application. Watch for the quarter in which the non-AI line finally grows — or the one in which the AI line stops growing sequentially, having been guided to $21.7 billion for the fourth quarter23, because there is nothing underneath it to take the weight.

Moat trajectory: Widening

Revenue rose 127% in the latest quarter and segment operating margin reached 61.3%, the highest it has recorded, with research and development up only 18%. The width comes from one product cycle, so the trajectory is only as durable as AI order flow.

The number that tests this moat
Moat Explorer calc
Semiconductor revenue excluding AI, latest quarter
About $4.1B ($20,839M less $16.7B), roughly where it has sat for six quarters

Everything growing in this segment is AI. The day the non-AI line moves, Broadcom has a second engine; until then a pause in accelerator orders takes the whole segment down with it.

How it's calculated: Moat Explorer calculation: segment revenue of $20,839M less the $16.7B of AI semiconductor revenue disclosed on the call.
Source: Broadcom Q3 FY2026 release and Form 10-Q (Moat Explorer calc) ↗
References
  1. ReportedBroadcom's semiconductor segment sold $20,839 million in the quarter to 2 August 2026, up 127% on a year earlier — more than the entire company took in any quarter before fiscal 2026.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  2. ReportedManagement put AI semiconductor revenue at $16.7 billion for the quarter, up 221% year on year and 54% on the quarter before, which leaves about $4.1 billion for everything else — roughly what the non-AI business has produced in every quarter for six.
    Broadcom Inc., Q3 FY2026 results (Form 8-K exhibit 99.1) - revenue $29,591M, up 86%; AI semiconductor revenue $16.7 billion, up 221% year over year and 54% quarter over quarter; Q4 FY2026 guidance of approximately $34.8 billion of revenue and $21.7 billion of AI semiconductor revenue (+236%); free cash flow $13,665M, 46% of revenue; semiconductor solutions revenue $20,839M and infrastructure software $8,752M — Quarter ended 2 August 2026 · publ. 2026-09-02 · source ↗
  3. Moat Explorer calcManagement put AI semiconductor revenue at $16.7 billion for the quarter, up 221% year on year and 54% on the quarter before, which leaves about $4.1 billion for everything else — roughly what the non-AI business has produced in every quarter for six.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  4. Moat Explorer calcManagement put AI semiconductor revenue at $16.7 billion for the quarter, up 221% year on year and 54% on the quarter before, which leaves about $4.1 billion for everything else — roughly what the non-AI business has produced in every quarter for six.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  5. ReportedBroadcom's AI solutions are "custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices" and optical components, "as well as racks and systems based on our XPUs", and the segment sells into five named end markets: Networking Connectivity, Wireless Device Connectivity, Servers and Storage Systems, Broadband and Industrial.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  6. ReportedBroadcom's AI solutions are "custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices" and optical components, "as well as racks and systems based on our XPUs", and the segment sells into five named end markets: Networking Connectivity, Wireless Device Connectivity, Servers and Storage Systems, Broadband and Industrial.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  7. ReportedAn investor gets the segment total and the AI figure management chooses to give on the call, and nothing in between — so the size of the wireless franchise that once made Apple a named 20% customer is now an inference rather than a disclosure.
    Broadcom Inc., Form 10-K FY2023 - aggregate sales to Apple Inc., through all channels, approximately 20% of net revenue for each of fiscal years 2023 and 2022 — Fiscal years 2022-2023 · publ. 2023-12-14 · source ↗
  8. ReportedThe segment took $17,491 million in fiscal 2017 and $18,934 million in fiscal 2018, then fell 8% to $17,368 million in fiscal 2019 and again to $17,267 million in fiscal 2020.
    Broadcom Inc., Form 10-K FY2019 - three reportable segments before fiscal 2020: semiconductor solutions net revenue $17,368M, $18,934M and $17,491M, infrastructure software $5,156M, $1,780M and nil, and IP licensing $73M, $134M and $145M for fiscal years 2019, 2018 and 2017; semiconductor solutions revenue fell 8% in fiscal 2019; two reportable segments from the fiscal year ending 1 November 2020 — Fiscal year ended 3 November 2019 · publ. 2019-12-20 · source ↗
  9. ReportedThe segment took $17,491 million in fiscal 2017 and $18,934 million in fiscal 2018, then fell 8% to $17,368 million in fiscal 2019 and again to $17,267 million in fiscal 2020.
    Broadcom Inc., Form 10-K FY2021 - segment note on the recast two-segment basis: semiconductor solutions net revenue $20,383M, $17,267M and $17,441M and infrastructure software $7,067M, $6,621M and $5,156M for fiscal years 2021, 2020 and 2019; segment operating income $10,976M, $8,576M and $8,538M, and $4,936M, $4,363M and $3,391M — Fiscal year ended 31 October 2021 · publ. 2021-12-17 · source ↗
  10. ReportedFour years of ordinary growth carried it to $28,182 million by fiscal 2023 and $36,858 million by fiscal 2025.
    Broadcom Inc., Form 10-K FY2023 - segment note: net revenue of $28,182M, $25,818M and $20,383M from semiconductor solutions and $7,637M, $7,385M and $7,067M from infrastructure software for fiscal years 2023, 2022 and 2021; segment operating income $16,486M, $15,075M and $10,976M, and $5,639M, $5,219M and $4,936M — Fiscal year ended 29 October 2023 · publ. 2023-12-14 · source ↗
  11. ReportedFour years of ordinary growth carried it to $28,182 million by fiscal 2023 and $36,858 million by fiscal 2025.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  12. ReportedThen, in three quarters of fiscal 2026, it sold $48,363 million — more in nine months than in the whole of any prior year, and an increase over the comparable period larger than the segment's entire fiscal 2020 revenue.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  13. ReportedThe new business increasingly sells whole racks and systems, and Broadcom has warned shareholders what that does: selling or leasing AI racks "will likely increase our operating margin but compress or lower future gross margin".
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  14. Moat Explorer calcSegment operating margin was 49.7% in fiscal 2020 and 58.5% in fiscal 2023, eased to 57.6% in fiscal 2025 as the rack content arrived, and then reached 61.3% in the latest quarter — the highest the segment has recorded, on revenue that more than doubled.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  15. Moat Explorer calcSegment operating margin was 49.7% in fiscal 2020 and 58.5% in fiscal 2023, eased to 57.6% in fiscal 2025 as the rack content arrived, and then reached 61.3% in the latest quarter — the highest the segment has recorded, on revenue that more than doubled.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  16. Moat Explorer calcSegment operating margin was 49.7% in fiscal 2020 and 58.5% in fiscal 2023, eased to 57.6% in fiscal 2025 as the rack content arrived, and then reached 61.3% in the latest quarter — the highest the segment has recorded, on revenue that more than doubled.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  17. ReportedFabless economics do that: Broadcom carried just $2,530 million of net property, plant and equipment against $171,092 million of total assets at the end of fiscal 2025, so volume arrives without a corresponding building.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  18. ReportedThe engineering bill behaves the same way: the segment's own research and development cost $1,006 million in the quarter against $850 million a year earlier, an 18% increase carrying a 127% one.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  19. ReportedBroadcom has promised its own suppliers $126,821 million, of which $72,952 million falls in fiscal 2028: a forward order on capacity that only makes sense if the AI line keeps compounding, placed by a company that sells the result through one door: a single distributor accounted for 50% of all net revenue in the quarter, against 32% for fiscal 2025 as a whole.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  20. ReportedBroadcom has promised its own suppliers $126,821 million, of which $72,952 million falls in fiscal 2028: a forward order on capacity that only makes sense if the AI line keeps compounding, placed by a company that sells the result through one door: a single distributor accounted for 50% of all net revenue in the quarter, against 32% for fiscal 2025 as a whole.
    Broadcom Inc., Form 10-Q for the quarter ended 2 August 2026 - remaining performance obligations approximately $179.2 billion, including a long-term contract for custom AI accelerators entered in the quarter ended 3 May 2026, about 25% expected within 12 months; one semiconductor customer, a distributor, 50% of net revenue in the quarter (32% a year earlier) and top five end customers about 55%; distributors 56% of net revenue for three quarters; purchase commitments $126,821M ($52,674M for fiscal 2027, $72,952M for fiscal 2028); operating income $15,955M (54% of revenue) against $5,887M (37%); infrastructure software revenue $8,752M (+29%) and operating income $7,325M (+40%), attributed to VMware Cloud Foundation including additional license revenue; subscriptions and services revenue $5,312M against $4,779M, products $24,279M against $11,173M — Quarter ended 2 August 2026 · publ. 2026-09-10 · source ↗
  21. ReportedBroadcom has promised its own suppliers $126,821 million, of which $72,952 million falls in fiscal 2028: a forward order on capacity that only makes sense if the AI line keeps compounding, placed by a company that sells the result through one door: a single distributor accounted for 50% of all net revenue in the quarter, against 32% for fiscal 2025 as a whole.
    Broadcom Inc., Form 10-K FY2025 - segment note and MD&A: semiconductor solutions net revenue $36,858M and infrastructure software $27,029M; segment operating income $21,232M and $20,765M; products $44,847M and subscriptions and services $19,040M, with products of $33,596M sold in Asia Pacific and subscriptions and services of $11,031M in the Americas; segment descriptions (custom accelerators or XPUs, Ethernet switching and routing silicon, Ethernet NICs, physical layer devices and optical components, racks and systems; private cloud, mainframe, cybersecurity, enterprise software and the FC SAN business); five major end markets; the warning that selling or leasing AI racks will likely increase operating margin but compress or lower future gross margin; VMware Cloud Foundation distribution; net property, plant and equipment $2,530M against total assets $171,092M; one semiconductor solutions customer, a distributor, 32% of net revenue for fiscal 2025 and 28% for fiscal 2024 — Fiscal year ended 2 November 2025 · publ. 2025-12-12 · source ↗
  22. Moat Explorer calcNon-AI semiconductor revenue has sat near $4.1 billion a quarter for six quarters, and until it moves, the segment has no second engine: every dollar of growth and every point of margin improvement traces to accelerators and networking bought by a handful of buyers for a single application.
    Moat Explorer calculation from Broadcom's Forms 10-K and its Form 10-Q for the quarter ended 2 August 2026: segment operating margins $21,232M/$36,858M = 57.6% and $20,765M/$27,029M = 76.8% for fiscal 2025, $12,770M/$20,839M = 61.3% and $7,325M/$8,752M = 83.7% for the quarter, $8,576M/$17,267M = 49.7% for fiscal 2020, $16,486M/$28,182M = 58.5% for fiscal 2023 and $13,977M/$21,478M = 65.1% for fiscal 2024; semiconductor revenue excluding AI $20,839M - $16,700M = about $4.1B, against about $4.0-4.2B in each of the six preceding quarters; combined segment operating income for the nine months $29,554M + $18,295M = $47,849M; infrastructure software revenue growth $7,637M/$6,621M = 15% over three fiscal years; cumulative segment operating income fiscal 2019 to 2025 $97,254M for semiconductors and $58,680M for software — Fiscal 2019 to the quarter ended 2 August 2026 · publ. 2026-09-22 · source ↗
    Method: Moat Explorer calculation from Broadcom's Forms 10-K FY2019, FY2021, FY2023 and FY2025 and its Form 10-Q for the quarter ended 2 August 2026; operands are in the source line.
  23. ReportedWatch for the quarter in which the non-AI line finally grows — or the one in which the AI line stops growing sequentially, having been guided to $21.7 billion for the fourth quarter, because there is nothing underneath it to take the weight.
    Broadcom Inc., Q3 FY2026 results (Form 8-K exhibit 99.1) - revenue $29,591M, up 86%; AI semiconductor revenue $16.7 billion, up 221% year over year and 54% quarter over quarter; Q4 FY2026 guidance of approximately $34.8 billion of revenue and $21.7 billion of AI semiconductor revenue (+236%); free cash flow $13,665M, 46% of revenue; semiconductor solutions revenue $20,839M and infrastructure software $8,752M — Quarter ended 2 August 2026 · publ. 2026-09-02 · source ↗
Sources
Generated September 22, 2026