Broadcom’s AI semiconductor revenue rose 221%.

Its shares still fell 6.6%.

The growth is real. The harder question is how much future growth depends on OpenAI and Anthropic delivering at the scale investors expect.

Broadcom’s AI Revenue Is Accelerating

Broadcom reported Q3 FY26 revenue of $29.59B, ahead of the $29.43B estimate.

EPS was $3.32 versus $3.24 estimated.

Free cash flow came in at $13.7B versus $13.8B estimated. Adjusted EBITDA was 66% of revenue.

AI semiconductor revenue reached $16.7B, up 221% year over year.

The broader semiconductor business grew 127%. That was its eighth consecutive quarter of accelerating growth.

The acceleration was linked to programs involving Google TPU, Meta MTIA, OpenAI, and Anthropic.

Revenue rose 86% year over year. Free cash flow rose 95%. GAAP net income rose 216%.

Shay Boloor said Broadcom is now earning roughly $173M in profit per day, compared with roughly $23M a little over two years ago.

Despite that growth, the shares fell 6.6%.

The $350B Target Depends on Large AI Programs

Broadcom guided for Q4 FY26 revenue of $34.8B, slightly below the $34.97B estimate.

AI semiconductor guidance was $21.7B, up 236% year over year.

The company also expressed a “high degree of confidence” that it will ship $350B of AI semiconductors over the next 2 years.

Its targets are roughly:

• $58B in FY26
• $115B in FY27
• $230B in FY28

One author said much of Broadcom’s future growth will come from OpenAI and Anthropic. That makes revenue from those companies a major part of the case.

Kalshi separately reported that 80% of OpenAI and Anthropic’s enterprise revenue comes from 1% of customers. Cory McAboy said that concentration should be considered alongside individual consumers paying $20 per month.

The counterpoint is that Broadcom’s acceleration was linked to four programs, not two. Google TPU and Meta MTIA are ramping alongside OpenAI and Anthropic.

One author laid out several share-price scenarios.

The estimates were $600 per share at 20x earnings if Hock is legitimately guiding to $30 of EPS by FY28, or $450 at 15x. If EPS reaches $40 to $50, the estimated range was $700 to $1000 using multiples of 15x to 20x.

These are the author’s scenarios, not reported guidance.

Strong Services and Oil Pressure Complicate Rates

Initial jobless claims rose 2,000 to 206,000 for the week ending Aug. 29. The four-week average was 207,250.

The ISM Services PMI rose to 55.4 in August from 54.1. Business activity and new orders were above 60.

But employment remained in contraction at 47.8. The prices-paid index jumped to 72.6.

Oil added more pressure. WTI settled near $91 and Brent near $95.50 as U.S.-Iran fighting continued.

VP Vance said the U.S. will not talk to Iran unless attacks on shipping in the Strait of Hormuz stop.

Fed Governor Christopher Waller said he would be inclined to keep rates unchanged if August data confirm recent signs of disinflation. A hot reading could still justify a hike.

Markets reduced September hike odds from roughly 63% to roughly 50%.

Friday’s August employment report is the next test before the Sept. 15-16 FOMC meeting. August CPI follows next week.

Enterprise AI Spending Keeps Expanding

ServiceNow signed an agreement with Aramco Digital to power AI workflows across Aramco’s affiliate network in more than 50 countries.

HPE expanded its Oracle AI data center agreement. It also reported Q3’26 revenue of $12.2B, up 34% year over year, with adjusted EPS of $1.11.

Nvidia-backed Nscale told prospective IPO investors that it has roughly $103B in contracted revenue, according to The Information.

That figure is not current revenue or formal guidance. One source called it “illustrative.”

New Models Arrive as Microsoft Prepares Azure Disclosure

Meta said Muse Spark 1.3 scored 88.8 on Terminal-Bench 2.1 and 75.4 on DeepSWE.

Google launched Gemini 3.8 Flash Cyber. Google reported scores of 86.2% on CyberGym and 47.2% on CWE-Bench.

Initial access is limited to government agencies and cybersecurity partners through the Fairwind program.

Microsoft will begin disclosing Azure revenue when it moves to its FY27 segment structure. The new segments will be Agents & Infrastructure and Devices & Consumer.

Market Breadth Is Improving, but Risks Remain

Technology represents 30% of the S&P.

Technology, healthcare, and financials have each returned more than 7% over the last month. Together, they account for nearly 50% of the index.

The speaker viewed weak performance in staples, utilities, and some defensive sectors as positive for the broader market.

But there are clear risks.

JPMorgan said a 5% 10-year Treasury yield could begin pressuring stocks.

Grace Peters sees a possible 5% to 8% correction into the midterms. She views that as a healthy pullback, not a structural break.

Debt Stress and Other Market Signals

U.S. subprime auto loans at least 60 days delinquent reached roughly 5.2%, the highest level on record.

Total U.S. auto debt increased by $28B in Q2 2026 to a record $1.71T.

Onchain tokenized equity holders reached a record 1.9M. Jupiter drove much of the growth, and 61% of volume happened during off-hours.

Reuters reported that Santander and JPMorgan are expanding overseas again after years of post-crisis retrenchment. Breakingviews columnists debated whether that expansion is bringing back risks associated with the 2008 crisis.

Vistra CEO James Burke was reported to have bought shares three times in two weeks. That included 2,000 shares at $135 on Aug. 24, a $270K purchase.

Five Value Bets Carry Different Risks

The value-investing speaker named Uber, Quao, Nike, Charter, and Pindoo as five interesting bets.

Uber was green. The case depends on continued free cash flow growth and autonomous vehicles eventually scaling, although the speaker said that won’t happen in the next few years.

He also called Uber too risky and too technology-heavy for his own portfolio.

Nike was green because of its logistics, warehouses, dividends, and buybacks. Lululemon’s $1 billion of buybacks and cash flows were cited as reasons it could survive the current downtrend.

Charter stayed green despite declining results, high capital spending, falling customer numbers, and heavy debt.

The speaker said lower capital intensity and a stable business could support a double or triple. But recession, higher rates, or other problems could leave bondholders in control.

Qua Show was presented as an AI asset-value case. The speaker cited a P ratio of eight, 412 million daily average users, and two hours of daily use.

He said Kling AI could generate $500 million in revenue over the next 12 months and compared Qua Show’s retained interest with a $9 billion market value.

The unnamed company building “the next pindoo” reported 8% growth and remained profitable, although margins fell as it invested.

The speaker said delivery could produce a double or triple, but warned that promises from Chinese companies require care.

Adobe and Alibaba Move to Orange

Adobe moved from green to orange because the speaker saw weaker risk and reward at the current price.

Alibaba was also orange. Earlier promises weren’t reached, AI pricing is very low, and the speaker sees a possible race to the bottom.

Constellation Software, Flower Foods, and CH Industrial were rejected or dropped.

The speaker described Pabrai Wagons Fund’s positions in coal rigs, India, Turkey, Kazakhstan, and Constellation Software as volatile bets. He said an emerging-market crisis or global recession could make those markets suffer more than the rest.

Canada Rejects the Proposed U.S. Trade Terms

Mark Carney said proposed U.S. trade terms were “uneconomic, unfair, and undermined the net benefits for Canada.”

The speaker called the negotiations a sovereignty issue and “a kind of economic colonialism by the US.”

Carney said the United States sought to restrict Canada’s ability to make trade deals with other countries.

The speaker also said Washington demanded the right of first refusal on Canadian critical mineral sales and demanded that Canada stop protecting the French language.

Broadcom’s reported AI growth is already enormous. Its two-year shipment target is much bigger.

The unresolved question is whether large AI spending plans will become Broadcom revenue at the scale investors expect.