Broadcom Corp (AVGO)

[behappyalways]

Broadcom Slips After Report That Apple Seeks To Replace Its Chip With In-House Silicon By 2025
https://www.zerohedge.com/markets/broad ... licon-2025

[winston]

not vested

BROADCOM raised its annual forecast for revenue from chips that help in artificial intelligence (AI) work by 10 per cent on Wednesday (Jun 12) and announced a stock split to take advantage of a rally in its shares this year.

Shares of the Palo Alto, California-based chipmaker surged 12 per cent in extended trading.

The company expects US$11 billion in revenue from AI-linked chips in 2024, up from its previous forecast of US$10 billion.

Broadcom manufactures advanced networking chips that help move around vast amounts of data used by AI applications such as OpenAI’s ChatGPT, making it one of the beneficiaries of businesses heavily investing in the boom.

Broadcom recorded revenue of US$3.1 billion from AI products during the second quarter.

Broadcom raised the full-year revenue forecast by US$1 billion to US$51 billion.

The company, which has seen its stock rally more than 30 per cent so far this year, after almost doubling in 2023, will carry out a 10-for-1 forward stock split, in a bid to make its shares more affordable for retail investors.

Source: Phillips

[winston]

Broadcom slumps 7% after chipmaker's sales outlook disappoints

by Scott Kanowsky

The firm projected that it would deliver $14 billion in revenue in its fourth quarter, just under estimates of $14.04 billion, according to LSEG data cited by Reuters.

For the July quarter, Broadcom announced adjusted earnings per share of $1.24 on revenue of $13.07 billion. Analysts polled by Investing.com had called for EPS of $1.21 and revenue of $12.97 billion.

Sluggishness in its broadband unit in particular, reporting that revenue in the segment dropped by 49% in the third quarter.

"Broadband remains weak on a continued pause in [telecommunications] and service provider spending," said Chief Executive Officer Hock Tan. He added that the broadband business will "continue to be down over 40% year-on-year" in the fourth quarter, although it is expected to begin recovering in 2025.

The result tempered strength in demand for the California-based company's critical artificial intelligence-optimized chips. Broadcom once again raised its outlook for full-year sales of AI parts and custom chips to $12 billion, up from its prior forecast of more than $11 billion during the period.

In the third quarter, AI revenue came in at roughly $3.1 billion, according to estimates from analysts at Bank of America. They noted that this number was "flattish sequentially," while Tan said AI sales were "pretty much in line" with what the company had anticipated.

Tan did not reveal any guidance for AI revenue in Broadcom's 2025 fiscal period, although he said it is projected to be "strong."

Even still, Broadcom's latest announcement underwhelmed sky-high expectations, echoing returns from AI semiconductor giant Nvidia (NASDAQ:NVDA) last week and leading some investors to be on the lookout for any signs that a recent boom in AI chip demand may be fading.

Analysts at Bank of America said in a note to clients that they expect the "inline trends and AI fatigue" to possibly keep Broadcom's stock "volatile near-term," although they argued that they view "any weakness as a particularly attractive buying opportunity."

Source: investing.com

https://www.investing.com/news/stock-ma ... es-3603997

[winston]

not vested

Broadcom shares target slashed, buy reiterated on AI revenue unpredictability

Truist Securities: $204.00

CY25 EPS estimate to $6.47, up from $6.39.

Truist Securities suggests buying Broadcom shares for several reasons:-
1. Potential for AI growth
2. Strong dividend momentum and
3. Benefits of mergers and acquisitions.

Rosenblatt and Benchmark both retained a Buy rating, with price targets of $240 and $210 respectively.

Broadcom's third-quarter revenue exceeded expectations at $13.07 billion, marking a significant year-over-year revenue increase of 47% to $13.1 billion.

Source: Investing.com

https://finance.yahoo.com/portfolio/mfa ... 5f/view/v1

[winston]

vested

Accelerating AI, recovery for non-AI to firm

3QFY24 results and guidance within expectations; lifted FY24 AI sales revenue to USD12bn, up from USD11bn previously

Non-AI markets have bottomed and should improve sequentially in the coming quarter

Continue to watch for strong performances in AI-chips and VMware

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=21134

[winston]

Broadcom Stock Nears Buy Point On Apple AI Server Chip News

by PATRICK SEITZ

Apple is working with Broadcom on a custom server processor for running AI applications in data centers.

Apple's AI chip is internally code-named Baltra and is expected to be ready for mass production by 2026, the report said.

Taiwan Semiconductor Manufacturing (TSM) will produce the chips for Apple, Reuters said.

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[winston]

not vested

Broadcom earnings top estimates after AI fuels sales growth

Profit was US$1.42 a share in the period, excluding some items.

Revenue rose to nearly US$14.1 billion.

Analysts had estimated US$1.39 a share in earnings and revenue of US$14.1 billion on average,

AI revenue grew grew 220 per cent during the year, fueled by demand for AI processors and networking components.

Broadcom’s semiconductor division had revenue of US$8.23 billion billion in the three months ended Nov 3, up 12 per cent. Software sales grew nearly 200 per cent to US$5.82 billion.

Source: Business Times

https://www.businesstimes.com.sg/compan ... les-growth

[winston]

not vested

Broadcom, a chip supplier for Apple and other big tech companies, posted better-than-expected profit in the fourth quarter after artificial intelligence demand helped bolster growth.

Profit was US$1.42 a share in the period, excluding some items, the company said in a statement on Thursday.

Revenue rose to nearly US$14.1 billion. Analysts had estimated US$1.39 a share in earnings and revenue of US$14.1 billion on average.

Sales will be US$14.6 billion in the fiscal first quarter, which runs through January, in line with estimates.

The results suggest that demand for AI computing is offsetting a slowdown in other areas. Like Nvidia, Broadcom is positioning itself to be a major beneficiary of AI spending.

Source: Phillips

[winston]

vested

Should You Hold Broadcom (AVGO) for the Long-Term?

by Soumya Eswaran

Third quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business.

The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, which only includes contributions from its current three customers.

Company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion.

Revenue for the fiscal year 2024 reached a record $51.6 billion, up 44% from the previous year.

Source: Insider Monkey

https://finance.yahoo.com/news/hold-bro ... 55939.html

[winston]

not vested

AI Chip Giant Broadcom Rebounds From DeepSeek Crash, Eyes Buy Point

by SCOTT LEHTONEN

Broadcom makes custom AI server chips for Alphabet's (GOOGL) Google, Facebook parent Meta Platforms (META) and TikTok owner ByteDance.

It also is designing AI inference chips for ChatGPT creator OpenAI and Apple (AAPL).

On the downside, the current consolidation is a late-stage base. That means it's more prone to failure and has less upside potential than earlier-stage formations.

Source: IBD

https://finance.yahoo.com/m/dd1166fc-0a ... adcom.html