Thursday evening, Broadcom reported solid quarterly results and proposed optimistic comments on the expected growth of its key artificial intelligence activity. While service providers are pushing the declining shares of prolonged exchanges, there is little reason for concern. Broadcom’s second quarter of the second quarter of Broadcom increased by 20% from one year to 15 billion dollars, slightly ahead of the consensual forecasts of $ 14.99 billion, according to the estimates compiled by LSEG. The profit -adjusted profit increased by 44% compared to the period of the previous year to $ 1.58, also exceeding expectations of $ 1.56, showed LSEG data. The benefit adjusted before interest, taxes, depreciation and amortization (EBITDA) increased by 35% from one year to the next to reach $ 10 billion in the quarter, beating the estimate of the Factst consensus of $ 9.94 billion. Broadcom’s shares fell by more than 4% in trade after opening hours Thursday, less than $ 249 each. This reaction is not really a surprise, given that the declared results of Broadcom and the directives during the quarter were only closely ahead of expectations and that the stock has been flying since early April. In the end, the company is in good shape, and we expect the actions to resume their trajectory upwards at the end of the year. Avgo Ytd Mountain Broadcom on the actions of the start of the year. In the end, Broadcom continues to shoot cylinders with second quarter sales, beneficiary margins and profits that all become estimates on Thursday evening. The expectations were raised to come in printing, Broadcom’s actions finishing the session of Thursday about $ 1 per share below the closing set of all time on Wednesday. Of course, the results were not enough to send higher actions in prolonged trading on Thursday. However, they were strong enough to validate the rally of almost 78% of the action on the fence of the rate on April 4. Aside from the short -term market reaction, it should also be in advance for Broadcom’s actions. The main reason: there is no sign that requires personalized AI chips from the company, or “accelerators”, and the company’s networking solutions is to let the CEO HOCK TAN calling for robust growth to continue in the next exercise of the company. More specifically, Tan said that Broadcom expects its growth rate for the 2025 year for AI “revenues” to be maintained in the 2026 “. Broadcom is the long-standing co-developer of the Alphabet Tensor processing unit, and more recently, would have added the name of Club Meta Platform and the owner of Tiktok Bytedance as customers (he does not name them directly). On the software side, Broadcom continues to make the most of its successful VMware acquisition while the company works to move more customers to accounts based on a subscription. Why we have Broadcom is a semiconductor and high-quality software company managed by an incredible CEO in Hock Tan. The company is a large AI beneficiary through its networking and personalized flea companies. It also has a capital allowance strategy adapted to shareholders with its dividends and redemptions. Competitors: Marvell Technology, Advanced Micro Devices and Nvidia Last Buy: November 21, 2024 Initiation date: August 24, 2023 During the quarter, Broadcom bought approximately 25 million shares in the three months completed on May 4, by returning a little more than $ 4.2 billion to shareholders. Additional $ 2.8 billion was returned by dividends. Based on everything we saw and heard on Thursday evening, we increase our lens on action to $ 290 per share, against $ 230. Nevertheless, we maintain our Hold-Equivalent 2 Given the incredible race that we have seen since the beginning of early April, which came only two days after the announcement of the “reciprocal” price of President Donald Trump. We will look for actions to consolidate or provide a more attractive entry point before considering upgrading it, as shiny as the future Broadcom looks. Broadcom Broadcom’s revenue from comments from Broadcom’s Broadcom semiconductor solutions increased by almost 17% from one year to the next to 8.41 billion dollars, exceeding expectations of $ 8.34 billion, according to Factst. The result also represents an acceleration from the 11% increase from one year to the other that we saw in the first quarter. The gross margin of the segment increased to 69%, a point extension of 140 basins compared to the previous year. The revenues of AI semiconductors, in particular, were $ 4.4 billion, up 46% of one year on the other. What led this strong result was the income of personalized AI accelerators, which increased two -digit compared to the period of the previous year. As a reminder, Broadcom’s AI activities have two parts: personalized AI accelerators and networking flea, which are actually part of the “plumbing” of a data center and help its various components to communicate together as a larger computer. In particular, AI networking income has more than doubled compared to the annual period, increasing more than 170% in annual sliding and representing 40% of total IA income. Asked about the strength of networking, Tan said on the call that, in the long term, networking should be less than 30% of IA revenues. During the call, Tan called the three customers of existing personalized chip from Broadcom – the alphabet, the meta and the above -mentioned bydance – while reaffirming that there are currently four “prospects” by considering a partnership with Broadcom for personalized AI solutions. Tan has been asked if the pink projections of Broadcom for the growth of IA revenues in 2026 include any contribution of the perspectives. “No comments. Do not talk about prospects. We are only talking about customers,” he said. The largely respected CEO has weighed on the way in which the evolution of macro-countryages around prices and the economy has an impact on the rate of investment in AI infrastructure. “These partners are still unwavering in their investment plan despite these economic environments,” he said. “In fact, what we recently see is that they double the inference to monetize their platforms. And by reflecting this, we can actually see an acceleration of [custom chip] The demand in the rear half of 2026 to meet the urgent demand for inference. “This is a notable commentary because there are two global IT computing categories. The first is the training, where large amounts of data are introduced in models to prepare them for use. In AI computer capacity, they need their own customers to use AI. At the bottom, such as wireless income, in accordance with seasonal trends. And overall, we plan to maintain approximately 4 semi-commanders billions of dollars, “said Tan. License users to calculate VMware Cloud Foundation (VCF) subscriptions. 2025, Broadcom has provided a total turnover of $ 15.8 billion, which represents growth of 21% per year. According to FactstSet, a guide to semiconductor solutions of approximately $ 9.1 billion. According to FactstSet, $ 10.37 billion. Portfolio.
