“Consistent with this trend in Q3, we expect AI semiconductor revenue to accelerate to $16 billion, up over 200% year on year.”

In context

“rs. Q2 operating margin was a record 67%, and adjusted EBITDA was a record 69% of revenue. Was above our guidance. Even as our revenue scales up massively, driven by AI, Our operating and EBITDA margins remain strong and stable. Turning to semiconductors. Q2 revenue was a record $15 billion as I said before, as we grew 79% year on year. Driving this growth was AI semiconductor revenue at a record $10.8 billion, up 143% year on year, and above our outlook. Networking represented almost 40% of our Q2 AI revenue. Demand for XPUs and networking is simply insatiable. During the quarter, bookings for AI semiconductors were over $30 billion against the $10.8 billion we shipped. In the second half of 2026, We expect AI semiconductor revenue to double from the first half we shipped from this year. Consistent with this trend in Q3, we expect AI semiconductor revenue to accelerate to $16 billion, up over 200% year on year. For the full year 2026, we expect to achieve AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 25. Now we expect this momentum to continue into fiscal year 27. And reiterate our AI semiconductor revenue guidance to be in excess of $100 billion. We expect AI Semiconductor revenue growth to continue in fiscal 28 based on the following initiatives we have with our 6 core customers. As you are aware, with Google, we announced April that we entered into a long term agreement to develop and supply multiple generations of TPUs and AI networking. Our relationship continues to be strategic and very substantial as we continue to deliver vastly superior technology and execution compared to other alternatives. This ability to provide differentiated value to Google ensures tha”