Broadcom Corp (AVGO)

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Broadcom (No. 88) reported third-quarter revenue of nearly $16 billion, a 22% increase from a year ago, driven in part by a 63% surge in AI-related revenue.

On the earnings call, CEO Hock Tan revealed that the company has secured a fourth customer placing a $10 billion order for custom AI chips.

The Financial Times and other outlets reported that the buyer is OpenAI.

Source: Fortune

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Broadcom Shares Soar On 10-Gigawatt Chip Deal With OpenAI
https://www.zerohedge.com/ai/broadcom-s ... eal-openai

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Broadcom forecasts upbeat quarterly revenue on AI chip demand

Specialised artificial intelligence chips.

Broadcom’s AI semiconductor revenue - which encompasses both the custom chips it helps firms such as Google to build, as well as networking chips used in AI data centres - is expected to double to US$8.2 billion in the fiscal first quarter.

Tomahawk and Jericho: critical for moving vast amounts of data within AI data centers.

Broadcom works with hyperscale cloud providers such as Google and Meta Platforms to design and manufacture custom AI processors, known as ASICs, providing a key alternative to Nvidia’s GPUs.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... -sambanova

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Broadcom Slips Post-Earnings Even as AI Demand Goes Parabolic

In its Q4 FY2025, Broadcom posted revenue of approximately $18.02 billion, achieving a growth rate of 28%. This solidly beat expectations of $17.46 billion, or 24% growth.

Adjusted earnings per share (EPS) rose by 37% to $1.95. This also beat expectations of $1.87, or 32% growth, by a considerable margin.

Growth in the company’s artificial intelligence (AI) semiconductor business came in strong at 74%, which significantly exceeded Broadcom’s guidance of 66% growth.

Even more impressive was the fact that the company expects AI semiconductor revenue to double year-over-year in Q1 FY2026.

The company expects total revenue of $19.1 billion next quarter, representing 28% growth.

Infrastructure Software segment, which houses VMware, also continued to grow nicely. Sales rose by 19%, an acceleration from 17% a quarter ago.

Tensor processing units (TPUs): develops with GOOGL. Broadcom further substantiated the idea that while Google uses TPUs internally, it is also making TPUs available to external customers. Apple (NASDAQ: AAPL) is one of those external companies that has used TPUs.

XPU: Fourth customer was Anthropic. After placing an initial $10 billion order, Anthropic more than doubled its commitment in Q4, placing an additional $11 billion order with Broadcom.

The company’s total AI backlog now exceeds $73 billion, which it expects to turn into revenue over the next 18 months.

Sees Infrastructure Software growth slowing to a low double-digit range in FY2026.

Source: The Markets Daily

marketbeat.com/originals/broadcom-slips-post-earnings-even-as-ai-demand-goes-parabolic/?utm_source=themarketsdaily.beehiiv.com&utm_medium=newsletter&utm_campaign=tmd-beehiiv

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<Research>BofAS Lifts Broadcom's TP to USD500 w/ Higher Earnings Forecasts

BofA Securities issued a research report reiterating Broadcom (AVGO.US) as its top pick with a Buy rating.

The broker raised its FY26-27 EPS forecasts for Broadcom by 8% to USD10.33 and USD14.4 respectively, despite concerns over higher tax rates and margin pressure from product mix.

Broadcom's target price was lifted from USD460 to USD500 based on an unchanged 33-time projected P/E ratio for FY27.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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Broadcom Is ‘Sitting on a Sinking Iceberg.’ Why 1 Analyst Is Warning on AVGO Stock Here.

by Aanchal Sugandh

Acknowledged AI application-specific integrated circuits’ (ASICs) growing relevance yet questioned the durability of Broadcom’s long-term positioning in that market.

Broadcom’s AI ASIC exposure does not merit a premium multiple versus leaders such as NVIDIA (NVDA) and assigned the stock a “Neutral” rating.

Source: Barchart

https://finance.yahoo.com/news/broadcom ... 31613.html

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Broadcom Hits $2 Trillion Market Cap as Google Reveals New AI Chips

by Leo Miller

Key Points

Broadcom's market capitalization momentarily rose above $2 trillion, driven up by a recent announcement from Google.

Google's next-generation TPU includes two separate chips, confirming past statements made by Broadcom.

See the benefits that two-chip deployments can bring to the semiconductor giant.

Source: Market Beat

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Broadcom & Meta Extend AI Pact Into 2029 as Shares Climb to $400

by Leo Miller

Key Points

Broadcom is back up from its lows, expanding several key AI partnerships along the way

Broadcom received its latest AI expansion from Meta Platforms, with the companies set to collaborate on custom chips through 2029

As Broadcom hits $400 again, its forward P/E ratio is down substantially, a positive sign going forward

Source: Market Beat

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not vested

Broadcom Hits $2 Trillion Market Cap as Google Reveals New AI Chips

by Leo Miller

Key Points

Broadcom's market capitalization momentarily rose above $2 trillion, driven up by a recent announcement from Google.

Google's next-generation TPU includes two separate chips, confirming past statements made by Broadcom.

See the benefits that two-chip deployments can bring to the semiconductor giant.

Source: Market Beat

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not vested

<Research> UBS Raises Broadcom Inc. (AVGO.US) TP to USD490, Sees Earnings Likely to Beat in Coming Quarters

UBS said in a report that after Broadcom Inc. (AVGO.US) shifted orders from Anthropic from full-rack systems to a more standardized application-specific integrated circuit (ASIC) arrangement (currently about 25% of the originally expected revenue but with significantly higher margins), the bank is revising its forecasts and raising its TP.

The net impact is a reduction in Anthropic's contribution for calendar years 2026 and 2027 from about USD21 billion and USD23 billion to about USD8 billion and USD22 billion, respectively, with the downgrade mainly concentrated in the earlier ramp-up phase.

Overall, UBS slightly lowered its forecast for Broadcom's artificial intelligence revenue in fiscal 2027 from about USD145 billion to about USD133 billion, and trimmed its fiscal 2027 EPS forecast marginally to USD21.14.

Looking ahead, the bank believes Broadcom's results in the coming quarters are well positioned to exceed market expectations, with potential revenue guidance far above the market consensus of about USD22 billion.

UBS forecasts AI-related revenue of USD13.6 billion for its third fiscal quarter.

Despite lowering its forecasts, the bank noted that the broad rally in the semiconductor sector in recent months has lifted peer valuations.

Based on peer valuation, UBS raised its TP for Broadcom from USD475 to USD490 and maintained a Buy rating.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN