Mkt Cap $1.5T
P/E 61.3 fwd 17.6
52wk $138.10 - $414.61
Earnings beating
bearish for 7d | 15 signals · latest 10h ago | updated 9h ago
Bearish
5.4
/ 10
Insider selling: $1,293,770,842 sold by 15 insiders (30d)
Est. revisions:
+11.1%
(35 up, 0 down in 30d)
Factor Breakdown
net +2.5
Est. Revisions
+0.6
Insider Activity
+0.0
Momentum
-0.1
Analyst Rev.
+1.0
Narrative Gap
+0.5
Broadcom Secures $970M Defense Contract, Eyes $100B AI Revenue
sweet_spot signal density
n=69
Factors:
+0.63 est. revisions
-0.06 momentum
+0.96 analyst
Watch: Track Q2 earnings and defense spending updates for clarity on contract execution and AI revenue growth validation.
Full analysis
Broadcom announced a $970 million five-year contract with DISA, consolidating software for multiple defense agencies and upgrading AI infrastructure. The company forecasts over $100 billion in AI chip revenue by 2027. Despite a 23.5% drop from its 52-week high and insider selling, institutional investors remain strongly supportive with solid analyst EPS revisions and a robust long-term price trend.
This contract and bullish AI revenue outlook position Broadcom as a leader in defense and AI semiconductors, underpinning substantial growth amid robust demand and strong institutional backing.
Position history (14d)
bull
bear
neutral
2026-03-08
2026-03-31
All 14 daily readings
2026-03-31
bearish · high
2sig
2026-03-29
bearish · high
8sig
2026-03-28
bearish · high
7sig
2026-03-27
bearish · high
8sig
2026-03-26
bearish · high
8sig
2026-03-25
bearish · high
7sig
2026-03-24
bearish · medium
7sig
2026-03-23
bullish · medium
8sig
2026-03-22
bullish · medium
8sig
2026-03-13
bullish · high
4sig
2026-03-11
bullish · high
6sig
2026-03-10
bullish · high
5sig
2026-03-09
bullish · high
5sig
2026-03-08
bullish · high
7sig
What We Found
Primary source analysis others skip
Material Events (8-K)
8-K
Retirement of Board Member
Eddy W. Hartenstein will retire from Broadcom's Board of Directors at the 2026 annual meeting upon completing his term, in accordance with the company's governance guidelines due to reaching age 75. H...
Filed 2026-03-02
· Eddy W. Hartenstein, Board Member
Get alerted when AVGO changes direction
Direction History
1/1 correct at 5 days
2026-03-23
bearish
-9.0%
✓
Related Stocks
Broadcom Inc.
Technology · Semiconductors
Mkt Cap
$1.5T
P/E
61.3 fwd 17.6
Beta
1.25
Div Yield
83.00%
52w Range
$138.10 - $414.61
Short Interest
52.5M 1.13%
Days to Cover
2.0 +5%
Technicals
downtrend
vs 20d MA
-1.8%
vs 50d MA
-3.0%
from 52w Hi
-23.5%
Vol (20d)
40%
1w return
+1.7%
1m return
-0.7%
3m return
-8.9%
Vol ratio
0.8x
Insiders
selling
1B / 15S
Analysts
mixed
Earnings
beating
4B / 0M
EPS Estimate
$2.39
+11.1% 30d
35up / 0dn
Est. Dispersion
7%
36 analysts
Analyst Target
$472
$360 - $630
Options P/C
0.45
8C / 4P unusual
Insider Cluster
strong sell
1B / 8S
Fund Convergence
strong
D.E. Shaw, Citadel, Coatue, Tiger Global, Bridgewater
Financials
Revenue
$19.3B +30% YoY
FCF
$8.0B
Gross Margin
68%
Op Margin
45%
Momentum:
decelerating
Top Holders
D.E. Shaw
$16.4B
Citadel
$9.0B
Coatue
$1.9B
Tiger Global
$995M
Bridgewater
$403M
Recent Filings & Data
insider trade
122
net selling
· $1,293,770,842 sold
· $1,552,999 bought
15 insiders · 122 transactions (30d)
Recent transactions
TAN HOCK E · other
BRAZEAL MARK DAVID · sell · $10,413,693
TAN HOCK E · sell · $24,310,684
SPEARS KIRSTEN MARGRETA · sell · $10,434,603
BRAZEAL MARK DAVID · sell · $9,126,058
TAN HOCK E · sell · $34,564,807
YOU HARRY L · buy · $325,129
TAN HOCK E · sell · $42,382,600
SPEARS KIRSTEN MARGRETA · sell · $2,028,440
BRAZEAL MARK DAVID · sell · $12,542,615
KAWWAS CHARLIE B · sell · $1,053,112
PAGE JUSTINE F. · other
BRAZEAL MARK DAVID · sell · $8,361,500
PAGE JUSTINE F. · sell · $289,512
SAMUELI HENRY · other
SAMUELI HENRY · sell · $128,297,553
PAGE JUSTINE F. · sell · $264,912
PAGE JUSTINE F. · sell · $280,120
SAMUELI HENRY · other
SAMUELI HENRY · sell · $124,620,222
TAN HOCK E · sell · $33,958,393
BRAZEAL MARK DAVID · sell · $9,592,387
KAWWAS CHARLIE B · sell · $2,256,460
PAGE JUSTINE F. · sell · $288,000
YOU HARRY L · buy · $1,227,870
TAN HOCK E · sell · $49,879,007
TAN HOCK E · sell · $50,000,208
PAGE JUSTINE F. · sell · $245,968
PAGE JUSTINE F. · sell · $219,440
SAMUELI HENRY · other
TAN HOCK E · sell · $10,731,720
DELLY GAYLA J · sell · $795,390
SAMUELI HENRY · other
BRAZEAL MARK DAVID · other
SAMUELI HENRY · sell · $125,737,538
SPEARS KIRSTEN MARGRETA · sell · $9,497,128
BRAZEAL MARK DAVID · sell · $13,105,050
TAN HOCK E · sell · $10,486,920
TAN HOCK E · other
BRAZEAL MARK DAVID · sell · $12,664,250
SPEARS KIRSTEN MARGRETA · sell · $14,175,986
PAGE JUSTINE F. · sell · $200,280
TAN HOCK E · sell · $29,782,176
KAWWAS CHARLIE B · sell · $2,528,810
PAGE JUSTINE F. · sell · $184,152
BRYANT DIANE M · award
LOW CHECK KIAN · award
PAGE JUSTINE F. · award
SAMUELI HENRY · award
HARTENSTEIN EDDY W. · award
DELLY GAYLA J · award
HAO KENNETH Y · award
YOU HARRY L · award
PAGE JUSTINE F. · sell · $148,000
SAMUELI HENRY · other
SAMUELI HENRY · sell · $120,576,863
BRAZEAL MARK DAVID · sell · $5,839,500
SPEARS KIRSTEN MARGRETA · award
BRAZEAL MARK DAVID · award
SPEARS KIRSTEN MARGRETA · award
BRAZEAL MARK DAVID · award
KAWWAS CHARLIE B · award
HARTENSTEIN EDDY W. · sell · $918,548
LOW CHECK KIAN · sell · $11,296,800
KAWWAS CHARLIE B · sell · $9,279,200
TAN HOCK E · other
BRAZEAL MARK DAVID · sell · $4,815,937
TAN HOCK E · sell · $10,798,200
BRYANT DIANE M · sell · $3,400,200
SPEARS KIRSTEN MARGRETA · sell · $2,886,323
PAGE JUSTINE F. · other
YOU HARRY L · sell · $1,569,626
SAMUELI HENRY · other
TAN HOCK E · award
BRAZEAL MARK DAVID · sell · $3,429,405
KAWWAS CHARLIE B · sell · $2,894,048
BRAZEAL MARK DAVID · sell · $3,456,338
BRAZEAL MARK DAVID · sell · $3,591,547
TAN HOCK E · sell · $6,943,980
TAN HOCK E · sell · $1,671,410
SAMUELI HENRY · other
DELLY GAYLA J · sell · $130,898
TAN HOCK E · sell · $25,941,000
KAWWAS CHARLIE B · sell · $4,240,505
TAN HOCK E · sell · $8,168,550
TAN HOCK E · sell · $127,980,369
TAN HOCK E · other
SAMUELI HENRY · other
PAGE JUSTINE F. · other
TAN HOCK E · other
PAGE JUSTINE F. · sell · $444,566
PAGE JUSTINE F. · sell · $561,600
KAWWAS CHARLIE B · sell · $4,613,997
BRYANT DIANE M · award
LOW CHECK KIAN · award
PAGE JUSTINE F. · award
SAMUELI HENRY · award
HARTENSTEIN EDDY W. · award
DELLY GAYLA J · award
HAO KENNETH Y · award
YOU HARRY L · award
SAMUELI HENRY · other
PAGE JUSTINE F. · sell · $145,530
BRAZEAL MARK DAVID · sell · $3,291,150
SPEARS KIRSTEN MARGRETA · sell · $4,029,435
BRAZEAL MARK DAVID · sell · $3,418,800
TAN HOCK E · sell · $2,624,500
VELAGA S. RAM · award
BRAZEAL MARK DAVID · sell · $3,297,438
BRAZEAL MARK DAVID · sell · $3,380,875
KAWWAS CHARLIE B · sell · $6,720,000
HAO KENNETH Y · sell · $12,715,311
BRAZEAL MARK DAVID · award
HARTENSTEIN EDDY W · sell · $4,064,583
BRAZEAL MARK DAVID · award
SPEARS KIRSTEN MARGRETA · award
KAWWAS CHARLIE B · award
VELAGA S. RAM · sell · $20,819,103
BRAZEAL MARK DAVID · sell · $27,061,694
KAWWAS CHARLIE B · sell · $20,966,675
SPEARS KIRSTEN MARGRETA · sell · $19,452,716
Henry Samueli · sell · $10,885,928
earnings
4
EPS 1.58 (est 1.5708) · +0.0%
EPS 1.69 (est 1.66338) · +0.0%
EPS 1.95 (est 1.86817) · +0.0%
EPS 2.05 (est 2.02326) · +0.0%
material event
1
Eddy W. Hartenstein will retire from Broadcom's Board of Directors at the 2026 annual meeting upon completing his term, ...
SEC↗
congress trade
11
David J. Taylor (Republican-OH)
· buy
· $1K-$15K
Ro Khanna (Democrat-CA)
· buy
· $1K-$15K
Tony Wied (Republican-WI)
· sell
· $15K-$50K
Julia Letlow (Republican-LA)
· sell
· $1K-$15K
Shelley Moore Capito (Republican-WV)
· buy
· $1K-$15K
6 more
Ro Khanna (Democrat-CA) sell $15K-$50K of AVGO
David J. Taylor (Republican-OH) buy $1K-$15K of AVGO
David J. Taylor (Republican-OH) sell $1K-$15K of AVGO
David J. Taylor (Republican-OH) sell $1K-$15K of AVGO
Gil Cisneros (Democrat-CA) buy $1K-$15K of AVGO
Daniel Milton Newhouse (Republican-WA) sell $1K-$15K of AVGO
transcript
5
2025Q4
· 6805 words
read transcript
Ji Yoo (Head of Investor Relations): Welcome to Broadcom Inc.'s Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Coaz, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the fourth quarter and fiscal year 2025. If you did not receive a copy, you may obtain the information from the investor section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared remarks, Hock and Kirsten will be providing details of our fourth quarter and fiscal year 2025 results, guidance for 2026, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I'll now turn the call over to Hock.
Hock Tan (President and CEO): Thank you everyone for joining us today. Well, we just ended our Q4 fiscal 2025. And before I get into details of that quarter, let me recap the year. In our fiscal 2025, consolidated revenue grew 24% year over year, to a record $64 billion, driven by AI semiconductors and VMware. AI revenue grew 65% year over year to $20 billion, driving the semiconductor revenue for this company to a record $37 billion for the year. In our infrastructure software business, strong adoption of VMware Cloud Foundation, or VCF as we call it, drove revenue growth of 26% year on year to $27 billion. In summary, 2025 was another strong year for Broadcom. And we see the spending momentum by our customers for AI continuing to accelerate in 2026. Now let's move on to the results of our fourth quarter 2025. Total revenue was a record $18 billion, up 28% year on year and above our guidance on better than expected growth in AI semiconductors as well as infrastructure software. Q4 consolidated adjusted EBITDA was a record $12.12 billion, up 34% year on year. So let me give you more color on our two segments. In semiconductors, revenue was $11.1 billion as year on year growth accelerated to 35%. This robust growth was driven by AI semiconductor revenue of $6.5 billion, which was up 74% year on year. This represents a growth trajectory exceeding 10 times over the eleven quarters we have reported this line of business. Our customer accelerated business more than doubled year over year as we see our customers increase adoption of XPUs, as we call those customer accelerators, in training their LLMs and monetizing their platforms through inferencing APIs and applications. These XPUs, I may add, are not only being used to train and inference internal workloads by our customers. The same experience in some situations has been extended externally to other LLM peers. Best exemplified at Google where the TPUs used in creating Gemini are also being used for AI cloud computing by Apple, Cohere, and SSI as a sample. The scale at which we see this happening could be significant. As you are aware, last quarter, Q3 2025, we received a $10 billion order to sell the latest TPU ironwood racks to Anthropic. This was our fourth customer that we mentioned. In this quarter Q4, we received an additional $11 billion order from this same customer for delivery in late 2026. But that does not mean our other two customers are using TPUs. In fact, they prefer to control their own destiny by continuing to drive their multiyear journey to create their own custom AI accelerators or XPU RECs as we call them. I am pleased today to report that during this quarter, we acquired a fifth XPU customer through a $1 billion order placed for delivery in late 2026. Now moving on to AI networking. Demand here has even been stronger as we see customers build out their data center infrastructure ahead of deploying AI accelerators. Our current order backlog for AI switches exceeds $10 billion as our latest 102 terabyte terabit per second Tomahawk six switch, the first and only one of its capability out there, continues to book at record rates. This is just a subset of what we have. We have also secured record orde
... [transcript truncated at 5,000 chars — full text available via API]
2025Q3
· 6945 words
read transcript
Ji Yoo (Head of Investor Relations): Welcome to Broadcom Inc. Third Quarter fiscal year 2025 financial results conference call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Please go ahead. Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Coaz, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for 2025. If you did not receive a copy, you may obtain the information from the investors section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our third quarter fiscal year 2025 results, guidance for our 2025, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock.
Hock Tan (President and CEO): Thank you, Ji. And thank you everyone for joining us today. In our fiscal Q3 2025, total revenue was a record $16 billion, up 22% year on year. Now revenue growth was driven by better than expected strength in AI semiconductors, and our continued growth in VMware. Q3 consolidated adjusted EBITDA was a record $10.7 billion, up 30% year on year. Now, looking beyond what we are just reporting this quarter, with robust demand from AI bookings was extremely strong. And our current consolidated backlog for the company hit a record of $110 billion. Q3 semiconductor revenue was $9.2 billion as year on year growth accelerated to 26% year on year. And this accelerated growth was driven by AI semiconductor revenue of $5.2 billion, which was up 63% year on year and extended the trajectory of robust growth to 10 consecutive quarters. Now let me give you more color on our XPU business, which accelerated to 65% of our AI revenue this quarter. Demand for custom AI accelerators from our three customers continued to grow as each of them journeys at their own pace towards compute self-sufficiency. And progressively, we continue to gain share with these customers. Now, further to these three customers, as we have previously mentioned, we have been working with other prospects on their own AI accelerators. Last quarter, one of these prospects released production orders to Broadcom. And we have accordingly characterized them as a qualified customer for XPUs. And in fact, has secured over $10 billion of orders of AI rigs based on our XPUs. And reflecting this, we now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter. Turning to AI networking. Demand continued to be strong. Because networking is becoming critical as LLMs continue to evolve in intelligence and compute classes have to grow bigger. The network is the computer. And our customers are facing challenges as they scale to clusters beyond 100,000 compute nodes. For instance, scale up which we all know about, is a difficult challenge. When you are trying to create substantial bandwidth to share memory across multiple GPUs or XPUs. Earlier this year, we launched Tomahawk five. We've opened Ethernet, which can scale up to 512 compute nodes for customers using XPUs. Moving on to scaling out across regs. Today, the current architecture using 51.2 terabits per second requires three tiers of networking switches. In June, we launched Tomahawk six and our Ethernet-based 102 terabits per second switch, which flattens the network to two tiers. Resulting in lower latency and much less power. And when you scale to clusters beyond single data center footprint, you now need to scale computing across data centers. Over the past two years, we have deployed our Jericho three Ethernet router with hyperscale customers to just do this. And today, we have launched our next generation Jericho four Ethernet fabric router with 51.2 terabits per second deep buffering intelligent congestion control, to handle clusters beyond 200,000 compute nodes crossing multiple data centers. We know the biggest challenge to deploying larger clusters of compute for generative AI will be in networking. And
... [transcript truncated at 5,000 chars — full text available via API]
2025Q2
· 5026 words
read transcript
Ji Yoo (Head of Investor Relations): Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the second quarter of fiscal year 2025. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website. This conference call is being webcast live, and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2025 results, guidance for our third quarter of fiscal year 2025 as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock.
Hock E. Tan (President and CEO): Thank you, Ji, and thank you, everyone, for joining us today. In our fiscal Q2 2025, total revenue was a record $15 billion, up 20% year-on-year. This 20% year-on-year growth was all organic as Q2 last year was the first full quarter with VMware. Now revenue was driven by continued strength in AI semiconductors and the momentum we have achieved in VMware. Now reflecting excellent operating leverage, Q2 consolidated adjusted EBITDA was $10 billion, up 35% year-on-year. Now let me provide more color. Q2 semiconductor revenue was $8.4 billion, with growth accelerating to 17% year-on-year, up from 11% in Q1. And of course, driving this growth was AI semiconductor revenue of over $4.4 billion, which is up 46% year-on-year and continues the trajectory of 9 consecutive quarters of strong growth. Within this, custom AI accelerators grew double digits year-on-year, while AI networking grew over 170% year-on-year. AI networking, which is based on Ethernet was robust and represented 40% of our AI revenue. As a standard-based open protocol, Ethernet enables one single fabric for both scale out and scale up and remains the preferred choice by our hyperscale customers. Our networking portfolio of Tomahawk switches, Jericho routers and NICs is what's driving our success within AI clusters in hyperscalers. And the momentum continues with our breakthrough Tomahawk 6 switch just announced this week. This represents the next-generation 102.4 terabits per second switch capacity. Tomahawk 6 enables clusters of more than 100,000 AI accelerators to be deployed in just 2 tiers instead of 3. This flattening of the AI cluster is huge because it enables much better performance in training next-generation frontier models through a lower latency, higher bandwidth and lower power. Turning to XPUs or custom accelerators. We continue to make excellent progress on the multiyear journey of enabling our 3 customers and 4 prospects to deploy custom AI accelerators. As we had articulated over 6 months ago, we eventually expect at least 3 customers to each deploy 1 million AI accelerated clusters in 2027, largely for training their frontier models. And we forecast and continue to do so a significant percentage of these deployments to be custom XPUs. These partners are still unwavering in their plan to invest despite the certain economic environment. In fact, what we've seen recently is that they are doubling down on inference in order to monetize their platforms. And reflecting this, we may actually see an acceleration of XPU demand into the back half of 2026 to meet urgent demand for inference on top of the demand we have indicated from training. And accordingly, we do anticipate now our fiscal 2025 growth rate of AI semiconductor revenue to sustain into fiscal 2026. Turning to our Q3 outlook. As we continue our current trajectory of growth, we forecast AI semiconductor revenue to be $5.1 billion, up 60% year-on-year, which would be the 10th consecutive quarter of growth. Now turning to non-AI semiconductors in Q2. Revenue of $4 billion was down 5% year-on-year. Non-AI semiconductor revenue is close to the bottom, has been relatively slow to recover, but they had bright spots. In Q2, broadband, enterprise networking and server storage revenues were up sequentially. However, industrial was down and as expected, wireless was also down due to seasonality. In Q3, we expect enterprise networking
... [transcript truncated at 5,000 chars — full text available via API]
2025Q1
· 5753 words
read transcript
Gu (Head of Investor Relations): Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the first quarter of fiscal year 2025. If you did not receive a copy, you may obtain the information from the investors section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our first quarter fiscal year 2025 results, guidance for our second quarter of fiscal year 2025, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to US GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I'll now turn the call over to Hock.
Hock Tan (President and CEO): Thank you, Gu. And thank you everyone for joining today. In our fiscal Q1 2025, total revenue was a record $14.9 billion, up 25% year on year. And consolidated adjusted EBITDA was a record again, $10.1 billion, up 41% year on year. So let me first provide color on our semiconductor business. Q1 semiconductor revenue was $8.2 billion, 11% year on year. Growth was driven by AI, as AI revenue of $4.1 billion was up 77% year on year. We repeat our guidance for AI revenue of $3.8 billion due to stronger shipments of networking solutions to hyperscalers on AI. Our hyperscale partners continue to invest aggressively in the next generation Frontier models, which do require high-performance accelerators as well as AI data centers with larger clusters. Consistent with this, we are stepping up our R&D investment on two fronts. One, we're pushing the envelope of technology in creating the next generation of accelerators. We're taping out the industry's first two-nanometer AI XPU packaging 3.5D, as we drive towards a 10,000 teraflops XPU. Secondly, we have a view towards scaling clusters of 500,000 accelerators for hyperscale customers. We have doubled the radix capacity of this existing Tomahawk 5. Beyond this, to enable AI clusters to scale up on Ethernet towards one million XPUs. We have taped out our next-generation 100 terabit Tomahawk 6 switch running 200G SerDes and 1.6 terabit bandwidth. We will be delivering samples to customers within the next few months. These R&D investments are very aligned with the roadmap of our three hyperscale customers as they each race towards one million XPU clusters by the end of 2027. And, accordingly, we do reaffirm what we said last quarter, that we expect these three hyperscale customers will generate a serviceable addressable market or SAM in the range of $60 to $90 billion in fiscal 2027. Beyond these three customers, we had also mentioned previously that we are deeply engaged with two other hyperscalers in enabling them to create their own customized AI accelerator. We are on track to tape out their XPUs this year. In the process of working with the hyperscalers, it has become clear that while they are excellent in software, Broadcom is the best in hardware. Working together is what optimizes large language models. It is therefore no surprise to us since our last earnings call, the two additional hyperscalers have selected Broadcom to develop custom accelerators to train their next-generation Frontier models. So even as we have three hyperscale customers, we are shipping XPUs in volume today. There are now four more who are deeply engaged with us to create their own accelerators. And to be clear, of course, these four are not included in our estimated SAM of $60 billion to $90 billion in 2027. So we do see an exciting trend here. New Frontier models and techniques put unexpected pressures on AI systems. It's difficult to serve all classes of models with a single system design point. Therefore, it is hard to imagine that a general-purpose accelerator can be configured and optimized across multiple Frontier models. And as I mentioned before, the trend towards XPUs is a multiyear journey. So coming back to 2025, we see a steady ramp in the deployment of all our XPUs and networking products. So Q1 AI revenue was $4.1 billion, and we expect Q2 AI revenue to grow to $4.4 billion, which is up 44% year on year. Turning to no
... [transcript truncated at 5,000 chars — full text available via API]
2024Q4
· 5998 words
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Ji Yoo (Head of Investor Relations): Thank you, Cherie, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the fourth quarter and fiscal year 2024. If you did not receive a copy, you may obtain the information from the Investor section of Broadcom's website at broadcom.com. This conference call is being webcast live and then audio replay of the conference call can be accessed for one year through the investor section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our fourth quarter and fiscal year 2024 results, guidance for our first quarter of fiscal year 2025, as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock.
Hock Tan (President and CEO): Thank you, Ji. And thank you everyone for joining us today. Well, this has been a transformative year for Broadcom. Our fiscal year 2024 consolidated revenue grew 44% year-over-year to a record $51.6 billion. Now, excluding VMware, our revenue grew over 9% organically. So fiscal 2024 operating profit, excluding transition costs grew 42% year-over-year. And we returned a record $22 billion in cash to our shareholders, up 45% year-on-year through dividends, buyback and eliminations. There were two significant drivers of this transformation this year. First, we closed the acquisition of VMware in the early weeks of fiscal 2024 and have focused VMware on its technology leadership in data center virtualization. The integration of VMware is largely complete. Revenue is on a growth trajectory and operating margin reached 70% exiting 2024. We are well on the path to delivering incremental adjusted EBITDA at a level that significantly exceeds the $8.5 billion we communicated when we announced the deal. We are planning to achieve this much earlier than our initial target of three years. The second driver in 2024 was AI. Our AI revenue, which came from strength in custom AI accelerators or XPUs and networking, grew 220% from $3.8 billion in fiscal 2023 to $12.2 billion in fiscal 2024 and represented 41% of our semiconductor revenue. This drove semiconductor revenue up to a record $30.1 billion during the year. Okay, now let's move on to the fourth quarter and give you more color. Consolidated net revenue of $14.1 billion was up 51% year-on-year, excluding VMware. Organic growth was 11%, and operating profit of $8.8 billion was up 53% year-on-year. For the details on infrastructure software in Q4, this infrastructure software segment revenue was $5.8 billion, up 196% year-on-year, flat sequentially, even as multiple deals slip over into Q1. In VMware, we booked $21 million total CPU costs in a quarter versus $19 million a quarter ago. Of these, about 70% represented VMware Cloud Foundation or VCF, the full software stack virtualizing the entire data center. And this translated into Annualized Booking Value, or ABV as we call it, of $2.7 billion for VMware in Q4 up from 2.5 billion in Q3. Since closing the acquisition just over a year ago, we've signed up over 4,500 of our largest 10,000 customers for VCF. VCF enabled customers to deploy private cloud environments on-prem, as an alternative to running their applications in the public cloud. And in doing all this, we continued to drive down spending in VMware. We brought spending down to $1.2 billion in Q4, down from $1.3 billion in Q3. By reference, VMware spending was averaging over $2.4 billion per quarter prior to the acquisition with operating margin less than 30%. Moving on to Q1 outlook for infrastructure software, we expect Q1 revenue to grow to $6.5 billion, up 11% sequentially and 41% up year-on-year. For VMware, ABV is expected to exceed $3 billion compared to $2.7 billion in the preceding quarter. Turning to semiconductors, let me give you more details by end markets. Networking Q4 revenue of $4.5 billion grew 45% year-on-year. AI networking revenue, which represented 76% of networking, grew 158% year-on-year. This was driven by a doubling of our AI XPU shipments to our three hyperscale customers and four times growth in AI connectivity revenue driven by our Tomahawk and Jericho
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