Broadcom Corp (AVGO)

[winston]

not vested

Broadcom Inc. (AVGO.US) Plunges 14% After Hrs as Full-Yr AI Semis Revenue Forecast Misses

Shares of Broadcom Inc. (AVGO.US) plunged nearly 14% in after-hours trading to USD413.45, as the market was disappointed by the company's AI chip revenue outlook.

For its second fiscal quarter ended May 3, Broadcom reported revenue growing 48% YoY to USD22.187 billion, compared with analysts average estimate of USD22.1 billion.

Non-GAAP diluted EPS increased to USD2.44, above the prior consensus of USD2.39.

In the previous quarter, Broadcom's AI semiconductor revenue ballooned 143% YoY to USD10.8 billion, ahead of the earlier average estimate of USD10.7 billion.

The company said it expects AI semiconductor revenue of USD16 billion for the third fiscal quarter, below market expectations of USD17.2 billion.

For the full year, AI semiconductor sales are projected to reach USD56 billion, lower than the previous average estimate of USD57.6 billion.

Broadcom has begun delivering chips to OpenAI and projected to commence production later this year.

The company has signed a contract with OpenAI to deploy 1.3 gigawatts of capacity in 2027.

In addition, it will deploy 3 gigawatts of computing capacity for Meta Platforms, Inc. (META.US) by the end of 2028, with the first 1 gigawatt scheduled for delivery starting in 2H27.

Source: AASTOCKS Financial News

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

[winston]

not vested

Broadcom stock sinks 12% as AI chip forecast disappoints

by Ines Ferré

Semiconductor revenue from artificial intelligence in the second quarter grew 143% year over year. However, AI chip sales for the third quarter were projected at $16 billion, below analysts' estimates of $17.2 billion.

Additionally, the company did not raise its full-year AI semiconductor sales forecast.

"We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion".

The company's customers include Google (GOOG, GOOGL), Meta (META), and AI developers Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT).

Source: Yahoo Finance

https://finance.yahoo.com/markets/artic ... 02082.html

[winston]

not vested

Broadcom slides after AI chip outlook disappoints investors

The chipmaker will deploy three gigawatts of computing power for Meta through the end of 2028

Disappointing forecast for AI chip revenue.

Broadcom will sell US$56 billion in AI chips in the fiscal year that ends in October.

Broadcom is also taking a bigger role in helping finance the purchase of chips.

Apollo Global Management and Blackstone are working on a roughly US$36 billion debt financing deal to help Anthropic pay for its Google chips that Broadcom helped develop.

Source: Bloomberg

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

[behappyalways]

Broadcom's Q2 revenue hit a record high but it did not raise its AI chip sales target; its shares...
https://m.youtube.com/watch?v=2-EqsX9_2y0


Broadcom Crashes After AI Chip Revenue Forecast Misses
https://www.zerohedge.com/markets/broad ... ast-misses

[winston]

not vested

Broadcom Could Be The Biggest AI Winner Nobody Is Talking About

by Leo Sun

Unlike Nvidia (NASDAQ: NVDA), which produces general-purpose data center GPUs for training AI algorithms, Broadcom designs custom ASICs for hyperscalers such as Meta and Alphabet's Google.

At scale, these ASICs can help those hyperscalers process AI tasks more cost-efficiently than Nvidia's GPUs. They can also reduce their long-term dependence on Nvidia.

Broadcom's sales of AI chips soared 65% to $20 billion in fiscal 2025 (which ended last November), accounting for 31% of its top line.

From fiscal 2025 to fiscal 2028, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 52% and 53%, respectively. Those are explosive growth rates for a stock that trades at just 19 times next year's adjusted EBITDA.

Source: The Motley Fool

https://finance.yahoo.com/markets/stock ... 00092.html

[winston]

not vested

Is it Time to Buy This Stock’s Dip?

by Shaun Pruitt

AVGO still sitting on exhilarating gains of +400% in the last three years.

The market’s reaction serves as a reminder that exceptional companies can still be vulnerable when expectations become extraordinarily high.

While Broadcom remains one of the premier AI infrastructure plays, investors may want to remain disciplined regarding valuation and near-term volatility.

Source: Zacks


https://dailytradealert.com/2026/06/05/ ... tocks-dip/

[winston]

not vested

Broadcom CEO unnerves biggest AI backers in rattling pivot

by Peace Longe

Tan said Broadcom will now sell "chips only," stepping back from the fully integrated AI systems it had previously promised customers,

That move dampens hopes for the higher-margin business that investors were counting on.

Selling chips only means giving up the servers and full systems that carry fatter margins than chips alone do, and the pressure is already showing.

Broadcom guided third-quarter gross margin down to 74% from 77%, because lower-margin AI chips now make up a bigger slice of revenue than its software business,

Google, Broadcom's largest AI customer, will likely use more than one chip supplier going forward.

Source: The Street

https://finance.yahoo.com/markets/stock ... 00855.html

[winston]

OpenAI unveils custom chip it designed with Broadcom to boost its AI infrastructure

OpenAI's engineers designed the chip, called Jalapeño, together with Broadcom to perform a specific AI task known as inference, during which data is crunched in order to answer a user's query to a chatbot like ChatGPT.

The chip made by the team is as good as the Blackwell chips made by Nvidia or the tensor processing units designed by Alphabet's Google, Broadcom CEO Hock Tan said in an interview with Reuters.

The Jalapeño processor is designed to work speedily and efficiently with the large language models (LLMs) that power many AI applications, OpenAI hardware chief Richard Ho said.

The company plans to deploy Jalapeño by the end of this year, and it is the first step in a multi-generation chip development plan, OpenAI said.

It took the company's engineers roughly nine months to complete the chip design before it sent it to Taiwan's TSMC for manufacturing, in part because of using AI to speed specific aspects of the process, OpenAI said.

To make their own in-house chips, Meta Platforms, Amazon and Google have turned to the likes of Broadcom and Marvell, which provide specific design services and intellectual property that can be difficult to replicate in-house.

Anthropic is weighing building an AI chip of its own, sources told Reuters in April.

At the moment, however, because of the AI-related surge in memory demand, Broadcom's profit margin on the custom chips is not as high as some of the other chips it makes, such as networking switches, Tan said.

AI chips require large amounts of high-bandwidth memory, which challenges Broadcom's margins on custom AI chip products, Tan said. Tan said South Korea's SK Hynix and Samsung Electronics supply Broadcom with memory chips.

Source: The Standard
https://www.thestandard.com.hk/innovati ... le/335533/

[winston]

not vested

<Research> CLSA Cuts Broadcom Inc. (AVGO.US) TP to USD600, Faces Speculation but Financial Position Increasingly Clear

CLSA said Broadcom Inc. (AVGO.US) has added multi-year visibility to its custom application-specific integrated circuit (ASIC) product roadmap, although the stock appears inexpensive due to overly optimistic market upgrade expectations and ongoing speculation surrounding MediaTek’s progress with Google.

Taking a step back, the broker sees longer-term contracts, secured ASIC financing and potential 30% upside versus its fiscal 2027 AI semiconductor revenue outlook of USD100 billion.

This upside aligns with capacity bottlenecks at Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) , lending credibility to the forecast.

The broker raised its forecasts for Broadcom Inc., but lowered its TP from USD605 to USD600 based on 30 times projected fiscal 2027 non-GAAP EPS (previously 35 times), while maintaining an Outperform rating.

Source: AASTOCKS Financial News

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

[winston]

not vested

Broadcom powers OpenAI's AI chip push.

OpenAI unveiled its first custom AI chip, Jalapeno, developed with Broadcom (AVGO), with early tests showing about 50% lower costs than traditional GPUs.

OpenAI plans to spend tens of billions of dollars on Broadcom chips & deploy them across partner data centers including Microsoft (MSFT).

AVGO & MSFT are our Core Recommendations.

Source: UOBKH