Broadcom reported record fiscal third-quarter results that beat Wall Street estimates, driven by surging artificial-intelligence chip demand, but shares fell about 2.2% in Thursday premarket trading as fourth-quarter revenue and margin guidance weighed on investors. Revenue rose 86% year over year to $29.59 billion, above the roughly $29.43 billion expectation, while adjusted earnings per share of $3.32 exceeded the approximately $3.24 LSEG consensus. AI semiconductor revenue soared 221% to $16.7 billion, with fourth-quarter AI semiconductor revenue projected at $21.7 billion. Broadcom guided fourth-quarter revenue to about $34.8 billion, below the approximately $35 billion consensus, and consolidated gross margin to approximately 73%, down from 78% a year earlier and 75% in the third quarter. The margin pressure reflects higher memory content in XPUs, or custom AI accelerators, and rising DRAM and NAND costs rather than weaker demand. Broadcom raised its fiscal 2027 AI revenue target to $115 billion from more than $100 billion, maintained a fiscal 2028 outlook of about $230 billion and said it had line of sight to roughly $350 billion across the two years. CEO Hock Tan said customer demand is outpacing manufacturing and supply-chain capacity, while the company monitors shortages in leading-edge wafers, substrates and high-bandwidth memory.