Broadcom Corp (AVGO)

[winston]

not vested

Broadcom forecast second-quarter revenue above Wall Street expectations on Thursday due to strong demand for its custom artificial intelligence chips from companies processing big data.

The chipmaker expects revenue of around US$14.90 billion, compared with estimates of US$14.76 billion, according to data compiled by LSEG.

Broadcom CEO Hock Tan said the company expects revenue of $4.4 billion in the second quarter for its AI semiconductors as hyperscale customers invest in custom AI chips for data centers.

Though Broadcom faces intense competition from Nvidia’s ethernet-like Infiniband products, it benefits from the expansion of AI data centers as one of the largest providers of advanced networking equipment.

Source: Phillips

[winston]

not vested

Analyst Says Broadcom (AVGO) ‘Deserves’ a High Multiple

by Fahad Saleem

Gene Munster, Deepwater Asset Management Managing Partner believes we still have two years of the AI bull run before the bubble bursts.

It went from 34 times forward estimates, which got rich, to now 28 times.

It deserves a higher multiple because they are going to see something like a $60 to $90 billion total addressable market in their AI business, with two new ASIC customers coming in the next couple of years.

I think that’s going to be very positive. I love the VMware acquisition, what it’s doing for their recurring revenue and margin.

Their non-AI business has actually been horrible, and I expect it to be down 15% in the quarter, but I do think you’re in the process of troughing.

The company expects strong AI semiconductor sales growth to continue. It sees AI semiconductor revenue of about $4.4 billion in fiscal Q2, which would be a 42% year-over-year growth. Broadcom reported $6 billion in free cash flow for the quarter. Its software business gross margin came in at about 90%.

What’s Broadcom’s moat? It makes ASIC, chips designed for specific applications and tasks. As major companies look for custom chips to break Nvidia’s monopoly and lower costs, Broadcom is positioned well to thrive.

Source: Insider Monkey

https://finance.yahoo.com/news/analyst- ... 54131.html

[winston]

vested

Broadcom Continues to See Huge AI Opportunity. Should You Buy the Stock Now Before It Soars?

by Geoffrey Seiler

The stock is now down about 21% on the year as of this writing.

Broadcom's big custom AI chip opportunity with the company's three largest customers.

These three "hyperscale customers" (meaning they operate huge data centers) were planning to deploy 1 million AI chip clusters in fiscal year 2027, representing a $60 billion to $90 billion addressable market when including chips and networking equipment for that year alone.

Broadcom is currently at around a $16 billion AI revenue annual run rate.

Meanwhile, Broadcom said it was actively involved with four other hyperscale companies to develop AI chips.

Broadcom management forecasted fiscal Q2 revenue to increase by 19% to $14.9 billion, with semiconductor revenue climbing 17% to $8.4 billion and infrastructure software revenue jumping 23% to $6.5 billion.

It projected AI revenue to increase by 44% to $4.4 billion, led by a steady ramp-up in deployment of its AI chips and networking products. It expects adjusted EBITDA to be about 66% of revenue, or about $9.8 billion.

Source: The Motley Fool

https://finance.yahoo.com/news/broadcom ... 00538.html

[winston]

not vested

Broadcom's AI Growth Is Unstoppable. Is the Dividend-Paying Growth Stock a Buy Now?

by Daniel Foelber

Broadcom is unique because it combines a rapidly growing AI segment with an established networking business and a massive infrastructure software business thanks to its acquisition of VMware.

For the first quarter of fiscal 2025, AI revenue grew 77% to $4.1 billion -- meaning AI alone made up 27.5% of total revenue.

The infrastructure software segment grew 47% thanks to the impact of VMware.

Analyst consensus estimates for fiscal 2025 earnings are $6.60 per share, and $7.81 per share in fiscal 2026.

Forward price-to-earnings ratio of 29.2

Source: The Motley Fool

https://finance.yahoo.com/news/broadcom ... 00855.html

[winston]

vested

Down 25%, Buy This Top AI Stock Before It Soars

by Benjamin Rains

AVGO works directly with multiple AI hyperscalers and posted 77% AI sales growth in its recently reported Q1 FY25.

Broadcom’s semiconductor solutions are critical components in telecommunication equipment, smartphones, data center servers, enterprise networking and beyond.

AVGO also provides enterprise software, including cybersecurity and hybrid cloud infrastructure, serving a wide-ranging customer base.

Broadcom collaborates with three AI hyperscalers (tech companies operating massive AI data centers, like Meta, Alphabet, and Amazon).

Broadcom grew its AI sales by 77% in Q1 FY25 (reported on March 6), boosting total revenue by 25% and lifting EPS by 45%.

30 of the 34 brokerage recommendations tracked by Zacks are “Strong Buys.

Source: Zacks

https://tradesoftheday.com/2025/03/21/d ... -it-soars/