Broadcom's AI Chip Business Drives Strong Q2 Earnings, Despite Stock Dip

Broadcom shares drop as revenue forecast fails to impress

June 5 (Reuters) - Broadcom (AVGO.O), opens new tab shares fell nearly 4% in premarket trading on Friday, after the company's third-quarter revenue forecast failed to impress investors who have been extremely bullish on chip stocks amid an artificial intelligence boom. The Palo Alto, California-based company, which supplies semiconductors to Apple (AAPL.O), opens new tab and Samsung (005930.KS), opens new tab, provides advanced networking gear that allows vast amounts of data to travel across AI data centers, making its chips crucial for the development of generative AI technology. Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "High expectations drove a bit of downside," Bernstein analyst Stacy Rasgon said in a note. Broadcom also helps design custom AI processors for large cloud providers, which compete against Nvidia's (NVDA.O), opens new tab pricey off-the-shelf chips. Global chipmakers, including Nvidia, have been vulnerable to U.S. President Donald Trump's shifting trade policy and export curbs as Washington attempts to limit Beijing's access to advanced U.S. technology. "AVGO is ramping two additional customers, but they are still small. So the processor business will grow this year, but at a measured rate," said Morgan Stanley. Last week, rival Marvell Technology (MRVL.O), opens new tab forecast second-quarter revenue above Wall Street estimate, betting on strong demand for its custom chips powering AI workload in data centers. Broadcom's valuation had crossed $1 trillion for the first time in December after it forecast massive expansion in demand for chips that power AI. Its shares have risen about 12% so far this year. It has a 12-month forward price-to-earnings ratio of 35.36, compared with Marvell's 20.63, according to data compiled by LSEG. Reporting by Twesha Dikshit in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

Here's what Wall Street has to say about Broadcom's second-quarter results

Analysts from several major Wall Street banks walked away from Broadcom 's latest quarterly report with more conviction on the stock. The chipmaker reported fiscal second-quarter revenue and profits on Thursday that exceeded analysts' estimates, and also gave strong guidance for the current quarter. Broadcom's adjusted earnings per share of $1.58 on revenue of $15 billion beat the expected $1.56 per share and $14.99 billion from analysts polled by LSEG. Broadcom saw $4.4 billion in AI revenue during the quarter and said it expects $5.1 billion in AI chip sales in its fiscal third quarter. Shares dipped 2% in premarket trading as the company gave a weaker forecast for its non-AI semiconductor revenue, where analysts were hoping to see signs of a cyclical recovery. The stock has soared 45% in the past three months. Analysts held to a long-term bullish outlook on Broadcom and praised what they called strong growth visibility heading into its next fiscal year, confident in management reaffirming its hyperscale customers and highlighting a well-positioned networking business amid continued AI demand. Bank of America, for example, said to "ignore quarterly noise" and focus on Broadcom's strong AI growth targets. Take a look at what some had to say: JPMorgan: overweight, price target $325 from $250 Analyst Harlan Sur said Broadcom remains his top pick in semiconductors. His bullish price target indicates roughly 25% upside ahead for the stock over the next year. "We are encouraged by team's strong line of sight to FY26 AI revenue profile driven by strong cloud/hyperscaler capex spending trends with continued focus on AI training combined with accelerating AI inference workloads, continued ramp of Google's next-gen TPU v6/v7 3nm AI accelerator ASICs, ramp up of Meta 3nm, and continued strong adoption of ethernet networking," he wrote in a note to clients. Overall, the team continues to drive a solid revenue growth profile even in a period of macro volatility given its portfolio breadth/diversification/product cycles." UBS: buy, lifts price target to $290 Analyst Timothy Arcuri bumped up his price target on Broadcom and called it "a clear AI winner." But the stock could consolidate some of its recent gains in the near term given already high investor expectations, he said. "Beyond the near-term, AVGO is likely to win on multiple fronts as hyperscaler customers look to create large heterogeneous compute clusters using either custom ASIC (the vast majority of which we think will be made by AVGO) or AMD alongside NVDA GPUs," Arcuri said in a Friday note. "AVGO's opportunity to link this all together using Ethernet should also scale alongside these solutions and AVGO also benefits from scaling out from cluster to cluster given its existing dominance in this market." Wells Fargo: equal weight, price target to $255 Analyst Aaron Rakers' price target implies Broadcom shares are expensive, and could fall about 2% from Thursday's close. Rakers highlighted Broadcom's "sustained AI momentum" into fiscal year 2026. "We continue to see shares representing a balanced risk/reward at current levels with significant leverage and an expectation that future acquisitions will remain a use of capital keeping us on the sidelines," Rakers said in a Thursday note. Deutsche Bank: buy, price target to $270 from $205 Analyst Ross Seymore expects the lack of recovery in Broadcom's non-AI business to remain a headwind heading into the fiscal fourth quarter, but expects greater focus on the growth trajectory of the company's AI business in the future. "Overall, the combination of secular growth (AI), continued software integration and execution (Vsphere contract conversions), and a potential cyclical rebound in the non-AI semis components should set the company up well for both the short- and longterm," Seymore said in a note. "Consequently, with our increased confidence in AVGO's ability maintain its AI growth in FY26 leading to a nearly +10% rise in our CY26 EPS ests, we maintain our buy rating." Bank of America: buy, price target to $300 from $240 Analyst Vivek Arya's new price target suggests the stock could gain another 15% in the coming year. A risk is that Broadcom is trading at the upper end of its historical range and at a premium to market leader Nvidia, he said. "While some might be disappointed AVGO did not update its FY27 $60-$90bn AI TAM, we believe it's only a matter of time especially as FY27 sell-side AI revenue cons. ests. is still well below $45bn, so plenty of headroom for upgrades," Arya wrote in a note. "Reit. Buy, a top computing and top-5 sector pick on unique mix of capital appreciation and consistent dividend growth with a blend of recurring (50% software), secular (AI) and cyclical (non-AI) profiles."

Here's what analysts expect to see when Broadcom reports earnings later Thursday

The market is once again all in on Broadcom , pushing up the stock 31% over the past month and 14% this year. Eyes now turn to its fiscal second-quarter earnings report for the quarter that ended in April, due to be released Thursday after the market close. Investors have piled into the chipmaker and infrastructure software provider after strong first-quarter earnings were reported in March, when Broadcom's second-quarter guidance for sales and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, also topped analysts' estimates and it touted "continued strength in AI semiconductor revenue." A month later, Broadcom authorized a $10 billion buyback of stock this year. Shares have continued to climb ahead of the next set of results, hitting a record high Wednesday of $261.08, its second consecutive record close. Wall Street investment banks remain optimistic toward Broadcom, expecting the booming artificial intelligence business to work in tandem with a recovery in Broadcom's non-AI semiconductor business. Twelve-month price targets range between $200 and $301 after the stock's latest run, however. Nearly 90% of the analysts covering Broadcom rate it the equivalent of a buy, according to FactSet data. Analysts polled by LSEG are expecting the company to report earnings of $1.56 per share on revenue of $14.99 billion, equal to year-over-year growth of 43% and 20%, respectively. Read what some analysts say they want to hear in Broadcom's latest quarter: Citi: buy rating, price target to $276 from $210 Analyst Christopher Danely raised his price target on the stock, toward the high end of its recent trading range, given his expectation that Broadcom will post a beat-and-raise quarter due to higher artificial intelligence sales. "With its non-AI semi business (27% of F25E sales) down roughly 40% from the peak, we believe the business should recover from the current levels and offset most of the gross margin dilution from its AI business," Danely said in a Monday note to clients. "We expect upside to AVGO's AI business throughout C25E driven by ramps at Google and Meta, and we model F25E AI sales to grow 48% YoY to roughly $18.1 billion. AVGO currently has three customers shipping in volume with two others on track to begin shipping in C26." JPMorgan: overweight, target $250 Broadcom remains JPMorgan's top pick in the firm's semiconductor coverage. Analyst Harlan Sur credited Broadcom's exposure to AI infrastructure spending trends, diversified end market sales and "best in-class gross, operation, and free cash flow margins." Broadcom is the second leading global AI semiconductor supplier and leading provider of both custom chip AI ASIC and cloud, AI networking, switch and routing chips, he said. "We continued to see a strong demand profile for its AI products (custom ASICs and networking solutions), stabilization in the non-AI semi business (e.g., enterprise, server/storage, broadband, wireless) and continued VMware revenue synergy unlock. As a result, we expect Apr-qtr revenue/earnings/FCF to be in-line to slightly better vs our/consensus expectation ... the non-AI semi businesses should gradually improve on improving cyclical trends with potential revenue upside in the wireless segment," Sur said in a Tuesday report. Sur's price target suggests Broadcom faces a 4% decline from Tuesday's close. Deutsche Bank: buy, target $205 Analyst Ross Seymore plans to revisit his price target after Broadcom reports this week. His current target is at the low end of the range on the Street and if continued, would imply roughly 21% downside from Broadcom's latest close. "We expect a typical solid beat/raise, with the midpoint of F2Q revenue guidance/DBe at ~$14.9b (~flat q/q) and F3Q at DBe ~ $15.8b (~+5% q/q), as y/y strength persists in the co's AI and Software segments, with non-AI semiconductor solutions still flirting with a steady recovery," Seymore said in a May 28 note. "Overall, we continue to view AVGO as offering a unique combination of upside drivers with its AI business ramping in XPUs + Connectivity, its cyclical businesses slowly rebounding, and its Software business benefiting from VMW integration." Oppenheimer: overweight, 12-18 month target $265 Analyst Rick Schafer's price target suggests about 2% upside ahead for Broadcom, based on Wednesday's close. Among several growth catalysts, Schafer said Broadcom has a sustained competitive advantage in the high-end filter market, boasts a strong M & A record with growing earnings per share and free cash flow and maintains its leadership in custom ASICs. "We believe AVGO has one of the most strategically and financially attractive business models in semiconductors," the analyst said in a May 29 note. "AVGO [is] the undisputed custom ASIC leader with seven announced projects. AI ASIC projects led by GOOG, META, ByteDance ($60B-$90B SAM in 2027) lead near term. OpenAI and Apple project ramp next year, followed by two new projects announced March 6." Mizuho: outperform, price target to $300 from $250 Analyst Vijay Rakesh's new price target implies about 15% upside from the last close for Broadcom. He is bullish on Broadcom's AI custom silicon business ramping up through 2026, and sees growth in networking with its high-speed SerDes IP technology used in AI infrastructure and data centers. "We see FCF growing potentially to ~$33B/yr in F25E(Oct), a good AI roadmap with XPU and connectivity, and VMWare integration ahead of schedule," Rakesh said in a May 27 note.

We're lifting our price target on Broadcom after its AI business impresses once again

Broadcom on Thursday night reported strong quarterly results and offered upbeat comments on the expected growth of its key artificial intelligence business. While profit-takers are pushing the stock down in extended trading, there is little cause for concern. Revenue in Broadcom's fiscal 2025 second quarter increased 20% year over year to $15 billion, slightly ahead of the consensus forecast of $14.99 billion, according to estimates compiled by LSEG. Adjusted earnings per share increased 44% from the year-ago period to $1.58, also outpacing expectations of $1.56, LSEG data showed. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 35% year over year to $10 billion in the quarter, beating the FactSet consensus estimate of $9.94 billion. Shares of Broadcom slumped more than 4% in after-hours trading Thursday, to below $249 apiece. This reaction is not much of a surprise, though, given Broadcom's reported results and current quarter guidance were only narrowly ahead of expectations and the stock has been flying since early April. Ultimately, the business is in good shape, and we expect shares to resume their upward trajectory into year-end. AVGO YTD mountain Broadcom's year-to-date stock performance. Bottom line Broadcom continues to fire on cylinders with second-quarter sales, profit margins and earnings all coming in ahead of estimates Thursday night. Expectations were lofty coming into the print, with Broadcom's stock ending Thursday's session about $1 a share below the all-time closing high set Wednesday. Sure, the results weren't enough of a blowout to send shares higher in extended trading Thursday. However, they were strong enough to validate the stock's nearly 78% rally off its tariff-driven closing low on April 4. Short-term market reaction aside, there should further should be upside ahead for Broadcom shares. The key reason why: There are no signs that demand for the company's custom AI chips, or "accelerators," and networking solutions is letting up anytime soon, with CEO Hock Tan calling for robust growth to continue into the company's next fiscal year. Specifically, Tan said Broadcom expects its fiscal 2025 growth rate for AI revenue to "sustain into fiscal 2026." Broadcom is the longtime co-developer of Alphabet's Tensor Processing Unit, and more recently is believed to have added Club name Meta Platforms and TikTok owner ByteDance as customers (it doesn't name them directly). On the software side, Broadcom continues to make the most of its blockbuster VMware acquisition as the company works to move more customers to subscription-based accounts. Why we own it Broadcom is a high-quality semiconductor and software company run by an incredible CEO in Hock Tan. The company is a big AI beneficiary through its networking and custom chip businesses. It also has a shareholder-friendly capital allocation strategy with its dividends and buybacks. Competitors : Marvell Technology, Advanced Micro Devices and Nvidia Last buy : Nov. 21, 2024 Initiation date : Aug. 24, 2023 During the quarter, Broadcom repurchased about 25 million shares in the three months ended May 4, returning just over $4.2 billion to shareholders. Another $2.8 billion was returned via dividends. Based on everything we saw and heard Thursday night, we're raising our price target on the stock to $290 a share from $230. Nevertheless, we are maintaining our hold-equivalent 2 given the incredible run we've seen since that early April low, which came just two days after President Donald Trump's "reciprocal" tariff announcement. We'll be looking for shares to consolidate or provide a more attractive entry point before we consider upgrading it, as bright as Broadcom's future looks. Commentary Broadcom's second-quarter semiconductor solutions revenue increased nearly 17% year over year to $8.41 billion, exceeding expectations of $8.34 billion, according to FactSet. The result also represents an acceleration from the 11% year-over-year increase we saw in the first quarter. Gross margin for the segment increased to 69%, a 140-basis point expansion versus the year prior. AI semiconductor revenue, in particular, was $4.4 billion, up 46% year over year. Driving that strong result was custom AI accelerator revenue, which increased double digits versus the year-ago period. As a reminder, Broadcom's AI business has two parts: custom AI accelerators and networking chips, which are effectively part of the "plumbing" of a data center and help its various components communicate together as a larger computing factory. Notably, AI networking revenue more than doubled versus the year ago period, surging over 170% year-over-year, and representing 40% of total AI revenues. Asked about the strength in networking, Tan said on the call that, over the long term, networking should be less than 30% of AI revenues. On the call, Tan called out Broadcom's three existing custom chip customers -- the aforementioned Alphabet, Meta and ByteDance -- while reaffirming that there are currently four "prospects" considering a partnership with Broadcom for custom AI solutions. Tan was asked whether Broadcom's rosy projections for AI revenue growth in 2026 include any contribution from prospects. "No comment. Don't talk on prospects. We only talk on customers," he said. The widely respected CEO weighed in on how the evolving macro landscape around tariffs and the economy is impacting its customers' pace of AI infrastructure investment. "These partners are still unwavering in their plan to invest despite these certain economic environment," he said. "In fact, what we're seeing 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 [custom chip] demand into the back half of 2026 to meet urgent demand for inference." This is a notable comment because there's two overarching categories of AI computing. The first is training, where large quantities of data are fed into models to prepare them for use. The second is inference, which is the day-to-day use of AI models. In that way, growing demand for inference computing among Broadcom's customers is a good sign of AI adoption in the real world. For companies to continue pouring billions into AI computing capacity, they need their own customers to be using AI. In the legacy semiconductor businesses, revenue fell 5% versus the year-ago period to $4.0 billion. Tan acknowledged that while the segment is "close to the bottom," it has been "relatively slow to recover." Nonetheless, Tan did call out a few bright spots including sequential growth for Broadband enterprise networking and server storage solutions. Industrial sales, on the other hand, were down, as were wireless revenues, in line with seasonal trends. Keep in mind: Club name Apple is Broadcom's unnamed wireless customer, so the sales here tend to show up closer to the new iPhone release in the back half of the calendar year. "We expect enterprise networking and broadband to continue to grow sequentially, but server storage, wireless and industrial are expected to be largely flat. And overall, we forecast non-AI semiconductor revenue to stay around $4 billion," Tan said. Infrastructure software revenue grew about 25% year over year to $6.6 billion, also ahead of the $6.47 billion consensus estimate, according to FactSet. Gross margin for the segment expanded to 93%, up from 88% the year prior. The segment continues to benefit from Broadcom's successful efforts to convert VMWare's perpetual license users for compute virtualization to VMware Cloud Foundation (VCF) subscriptions. VCF allows an entire data center to be virtualized and allows customers to create their own private cloud, which Tan said "will enable them to repatriate workloads from public clouds while being able to run modern container-based applications and AI applications." In fact, Tan said 87% of the company's largest customers have already adopted VCF. Guidance For its third fiscal quarter of 2025, Broadcom forecasted total revenue to be about $15.8 billion, representing growth of 21% year over year. That target is slightly above the $15.75 billion consensus, according to estimates compiled by FactSet. Importantly, AI revenue is expected to increase significantly in the current quarter, with Tan forecasting 60% year-over-year growth to $5.1 billion. Add in the legacy semiconductor business forecast of $4 billion, and we get a semiconductor solutions segment guide of about $9.1 billion, ahead of the $8.98 billion consensus forecast, according to FactSet. The $6.7 billion revenue guide we got for the infrastructure software segment also looks good against expectations of $6.68 billion, according to FactSet. The company expects adjusted EBITDA to be approximately 66% of projected revenue, or $10.43 billion, ahead of the $10.37 billion consensus estimate, according to FactSet. (Jim Cramer's Charitable Trust is long META, AAPL, AVGO and NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

AI chip demand propels Broadcom to another earnings beat, but its shares drop after-hours - SiliconANGLE

AI chip demand propels Broadcom to another earnings beat, but its shares drop after-hours Red hot chipmaking giant Broadcom Inc. narrowly beat expectations today as it delivered its second-quarter financial results. It also provided robust guidance for the current period, but its stock was cooling down after-hours. The company reported earnings before certain costs such as stock compensation of $1.58 per share, beating the $1.56 per share target. Revenue for the period gained 20% from a year earlier to $15 billion, just ahead of the analyst consensus estimate of $14.99 billion. Officials reported net income for the quarter of $4.97 billion, more than double the $2.12 billion net profit they delivered in the year-ago period. For the current quarter, Broadcom is looking for revenue of around $15.8 billion, higher than Wall Street's target of $15.7 billion. The numbers were strong across the board, but Broadcom's stock moved more than 4% lower in today's after-hours trading session, suggesting investors were either hoping for more - or are simply taking profits following a tremendous rally over the last couple of months. At Thursday's market close, the stock had risen 78% from its April closing low, which came at the height of concerns relating to U.S. tariffs. Still, Broadcom's stock is up 12% in the year to date, having doubled its value in the previous fiscal year due to growing optimism around its artificial intelligence chip business. That's an area that continues to grow. In the company's previous earnings call in March, Chief Executive Hock Tan (pictured) said it was developing customized AI chips for three large cloud providers. "We continue to make excellent progress on the multiyear journey of enabling our three customers and four prospects to deploy custom AI accelerators," Tan said in a conference call today. He added that those customers are "unwavering" in terms of their commitment to keep investing in AI. The chipmaker reported AI revenue of $4.4 billion during the previous quarter, up 46% from a year earlier, with Tan attributing much of that increase to demand for networking chips such as the new Tomahawk 6 series, which connect large clusters of AI accelerators. A couple of days prior to Broadcom's earnings report, analysts from Melius Research proclaimed the company as a "must-own" AI stock, citing its relationship with fabless chip providers. They added that the company's networking business, which accounts for about 30% of AI revenue, is likely to continue growing rapidly as customers look to scale their AI chip clusters. The analysts also noted that Broadcom is "unique" among AI chipmakers in the scope of its offerings, selling chips for both high performance and more cost-effective alternatives. Tan said in a statement that the company expects AI revenue to grow to $5.1 billion in the current quarter, as "hyperscale partners continue to invest". He added that he believes AI will continue to drive growth throughout fiscal 2026. Broadcom's hyperscale partners include companies such as Amazon Web Services Inc., Microsoft Corp. and Google LLC, which are all racing to build out their cloud-based AI infrastructure to power their own AI services, and also those of their customers. Sales to hyperscalers fall within Broadcom's semiconductor solutions business, which generated $8.4 billion in revenue during the quarter, up 17% from a year ago and above the Street's $8.34 billion forecast. The company also operates a profitable software business that includes VMware. Revenue in that segment jumped 25% from a year earlier to $6.6 billion, just ahead of the Street's consensus estimate.

Watch These Broadcom Stock Price Levels After Post-Earnings Slide

Broadcom (AVGO) shares fell sharply Friday, one day after the chip giant delivered results and an outlook that were largely in line with Wall Street estimates. The company's shares hit a fresh record high this week ahead of its highly anticipated results, boosted by expectations of robust revenue growth driven by surging demand for chips that power generative AI technology. CEO Hock Tan told analysts on the company's earnings call that chip demand may accelerate during the second half of 2026 due to strong inference demand, referring to the process that uses a trained AI model to make predictions or decisions. Still, Broadcom shares fell 5% to around $247 on Friday as the results and outlook may have missed the lofty expectations of investors, especially after the blockbuster results delivered by rival Nvidia last week. With today's decline, Broadcom shares are up about 6% since the start of the year, slightly outpacing the performance of the S&P 500 index over that stretch. Let's break down the technicals on Broadcom's chart and identify key price levels worth watching out for. After plumbing a seven-month low in early April, Broadcom shares have trended sharply higher within a rising wedge, with the price testing the pattern's upper trendline in recent trading sessions. However, profit-taking crept into the stock Thursday on the highest volume in around two months, which set the stage for today's selling. It's also worth pointing out that the relative strength index recently climbed above 80, a reading that coincided with major tops in the stock in December and June last year. Let's identify key support levels on Broadcom's chart to watch amid the potential for further selling and also locate an important overhead area worth monitoring during recovery efforts in the stock. Coming into Friday's session, the $250 level found a confluence of support from the rising wedge pattern's lower trendline and three notable peaks that formed on the chart between December and January. With the stock closing below this level, shares could test the next lower level of support at $235. Investors may look for dip buying opportunities in this region near the February countertrend peak. Further selling could trigger a steeper drop to the psychological $200 area. The shares would likely encounter support in this location near the upward sloping 50-day moving average, which also closely aligns with the January swing low and a period on consolidation in mid-March. During recovery efforts in Broadcom shares, investors should monitor the $265 area. Tactical traders who buy earnings-driven weakness may decide to lock in profits near the stock's all-time high toward the rising wedge pattern's peak. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

What Analysts Think of Broadcom Stock Ahead of Earnings

Most analysts tracked by Visible Alpha have a "buy" or equivalent rating, but their consensus price target suggests they don't see big gains for the stock. Broadcom (AVGO) is scheduled to report fiscal second-quarter results after the closing bell Thursday, with Wall Street expecting growing revenue and profits fueled by demand for AI chips. Analysts on average expect Broadcom to report revenue of $15.02 billion, up 20% year-over-year, and adjusted net income of $7.8 billion, up from $5.39 billion a year ago. AI revenue is expected to climb 42% year-over-year and 7% sequentially to $4.42 billion. Oppenheimer analysts called Broadcom the "No. 2 AI franchise after NVDA," in a note to clients Thursday, raising their price target to $265 from $225. Broadcom's "core franchises in networking, wireless, broadband, server/storage, and software support sustainable growth," the analysts said. "We remain long-term buyers." Of the 14 analysts tracked by Visible Alpha, 13 have a "buy" or equivalent rating for Broadcom stock, with one "hold." However, their consensus price target near $252 would suggest just 1% upside from Monday's close. After Nvidia's (NVDA) strong sales report last week, Morgan Stanley analysts said they "also are positive on [Broadcom] in the AI space, but we are hard pressed to generate additional enthusiasm."

Broadcom rides on AI chip demand to deliver upbeat revenue forecast

Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology. Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.

Broadcom's Quiet War On Nvidia: CEO Touts Custom AI Chips, Ethernet Over NVLink -- 'No Reason To Create A New Standard' - NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO)

Chipmaker Broadcom Inc. AVGO is drawing a line in the sand in the AI infrastructure battles, and it's doing so with custom AI chips and a commitment to open networking protocols. What Happened: During the company's second-quarter earnings call, CEO Hock Tan took a thinly veiled swipe at Nvidia Corp. NVDA for pushing its custom systems for connecting AI chips, a reference to the latter's NVLink architecture, and other emerging proprietary standards, aimed at turning the industry into a walled garden. When asked about the rise of competing ecosystems in AI networking, including NVLink and UALink, Tan stated rather bluntly that "there's no reason to create a new standard for something that could be easily done in networking in Ethernet." Tan emphasized Broadcom's commitment to open standards like Ethernet, calling it the "only true" open-source protocol compared to the closed alternatives being promoted by some rivals. "Most of them, by the way, are proprietary, much as they like to call it otherwise," he said. See Also: Bernie Sanders Slams Nike: Company Makes $23 Billion A Year, Workers Make $202 A Month -- 'Corporate Greed At Its Worst' He added that Ethernet has already proven itself over decades of use in traditional networking. "We believe Ethernet will prevail, as it does before for the last twenty years in traditional networking," Tan noted. Broadcom is becoming a key supplier for tech giants that are building massive AI data centers. Instead of relying entirely on off-the-shelf chips like Nvidia's, these companies are working with Broadcom to design their specialized AI chips, tailored to their individual needs and requirements. According to Tan, custom accelerators make it possible for customers to optimize the hardware for the software, which eventually results in "way higher performance than you otherwise could." Why It Matters: Several leading analysts have taken a bullish stance on the stock in recent weeks, with 8 being "Bullish" and 5 "Somewhat Bullish," with the high-end of the Price Target at $301, representing an upside of 15.80% from current levels. The Chief Global Strategist at Freedom Capital Markets, Jay Woods, referred to Broadcom as "basically Nvidia's baby brother," which has been under its shadow for several years, and is just beginning to break out. The company reported $15 billion in revenue during its second quarter results, up 20% year-over-year, and ahead of consensus estimates at $14.99 billion. It posted a profit of $1.58 per share, against estimates at $1.56, driven by strong momentum across its AI semiconductor solutions and its subsidiary, VMware. Price Action: The stock was down 0.44% on Thursday, trading at $259.93, and is down 4.20% after hours, following the company's second quarter results. According to Benzinga's Edge Stock Rankings, Broadcom scores well on Momentum and Quality, but is weak in terms of Value and Growth. It also has a favorable price trend in the short, medium, and long term. How does it compare with Nvidia? Click here for deeper insights. Read More: Stanford's 'Terminator' AI Just Beat 93% Of Human Fund Managers Using Just Public Data, Professor Warns These Entry-Level Number Crunchers Risk Extinction Photo courtesy: Tada Images / Shutterstock.com AVGOBroadcom Inc$250.80-3.51%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.61Growth38.69Quality83.31Value8.59Price TrendShortMediumLongOverviewNVDANVIDIA Corp$141.991.43%Market News and Data brought to you by Benzinga APIs

These Analysts Increase Their Forecasts On Broadcom After Upbeat Q2 Earnings - Broadcom (NASDAQ:AVGO)

Broadcom Inc AVGO reported better-than-expected second-quarter financial results after the market close on Thursday. Broadcom reported second-quarter revenue of $15 billion, beating analyst estimates of $14.99 billion, according to Benzinga Pro. The semiconductor company reported second-quarter adjusted earnings of $1.58 per share, beating analyst estimates of $1.56 per share. "Q2 AI revenue grew 46% year-over-year to over $4.4 billion, driven by robust demand for AI networking. We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," said Hock Tan, president and CEO of Broadcom. Broadcom expects third-quarter revenue of approximately $15.8 billion, versus estimates of $15.79 billion. The company anticipates third-quarter adjusted EBITDA of at least 66% of projected revenue. Broadcom shares fell 0.4% to close at $259.93 on Thursday. These analysts made changes to their price targets on Broadcom following earnings announcement. Benchmark analyst Cody Acree maintained Broadcom with a Buy and raised the price target from $255 to $315. Rosenblatt analyst Kevin Cassidy maintained the stock with a Buy and raised the price target from $223 to $340. Considering buying AVGO stock? Here's what analysts think: Read This Next: Jim Cramer Likes Dominion Energy, But Isn't 'A Fan' Of This Real Estate Stock Photo via Shutterstock AVGOBroadcom Inc$252.99-2.67%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.61Growth38.69Quality83.31Value8.59Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Broadcom Gets Mixed Reactions As Modest Earnings Beat Sparks Profit-Taking - Broadcom (NASDAQ:AVGO)

Wall Street analysts rerated Broadcom Inc (NASDAQ: AVGO) after it reported second-quarter financial results on Thursday. The company reported second-quarter revenue of $15 billion, up 20%, beating analyst estimates of $14.99 billion, driven by continued momentum in AI semiconductor solutions and VMware. The semiconductor company reported second-quarter adjusted earnings of $1.58 per share, beating analyst estimates of $1.56. The second-quarter AI revenue grew 46% to over $4.4 billion, driven by robust demand for AI networking. Also read: Broadcom Tomahawk 6 Flexes AI Muscle, Hyperscalers Are Buying In Broadcom expects third-quarter revenue of approximately $15.8 billion, versus estimates of $15.79 billion. Analyst Ratings JP Morgan analyst Harlan Sur maintained Broadcom with an Overweight and raised the price target from $250 to $325. Truist Securities analyst William Stein reiterated Broadcom with a Buy and raised the price target from $267 to $295. Rosenblatt analyst Kevin Cassidy maintained Broadcom with a Buy and raised the price target from $223 to $340. Cantor Fitzgerald analyst Matthew Prisco reiterated Broadcom with an Overweight and a $300 price target. Benchmark analyst Cody Acree maintained Broadcom with a Buy and raised the price target from $255 to $315. JP Morgan JP Morgan analyst Sur is encouraged by the Broadcom team's strong line of sight to fiscal 2026 AI revenue profile driven by strong cloud/hyperscaler capex spending trends with continued focus on AI training combined with accelerating AI inference workloads, continued ramp of Alphabet Inc GOOGL Google's next-gen TPU v6/v7 3nm AI accelerator ASICs, ramp up of Meta Platforms META 3nm, and continued strong adoption of ethernet networking. The continued substantial AI revenues underscore Broadcom's strong design win pipeline and confirm Sur's belief that internally developed custom ASIC silicon programs offer opportunities for differentiation, efficiency gains, and improved silicon economics. The analyst said that the fundamentals of cyclical semiconductor businesses are stabilizing across most areas. He stressed that Broadcom continues successfully converting and upselling to its VCF full-stack solution in the infrastructure software business. Even during macro volatility, the team drives a solid revenue growth profile. Sur estimated that Free Cash Flow generation will be $26 billion this year, up 34% year over year, implying a substantial dividend raise at the end of this fiscal year. Broadcom remains his top pick in semiconductors. Truist Securities Broadcom delivered only a modest upside to calendar first-quarter results and the calendar second-quarter guide. Still, Truist Securities analyst Stein noted investors were expecting a more significant beat, considering results from Nvidia Corp NVDA and capex outlooks from hyperscale companies. Stein stated Broadcom's long-term position in AI is stable or potentially improving, with significant customer additions (3 current and 4 potential additions) suggesting meaningful potential upside. He also anticipated long-term upside at VMWare. Broadcom's non-AI semi-sales in the calendar first quarter aligned with Stein's estimate. Still, management guided to flat quarter-on-quarter growth, implying $4 billion in the calendar second quarter and a ~5% miss compared to his model (not surprising to him, considering that he noted excess channel inventory). AI computes (custom accelerators) made up ~60% of total AI sales in the calendar first quarter, implying ~$2.6 billion (14% below his estimate of $3.1 billion). However, Stein remarked that AI networking delivered $1.8 billion in sales, up 170% Y/Y and 33% above his estimate of $1.3 billion. He said that Broadcom expects to shift back to 70/30 compute/networking going forward, implying a double-digit quarter-over-quarter decline in AI networking revenue and an acceleration in custom silicon. Rosenblatt Rosenblatt analyst Cassidy writes in the analyst note that Broadcom reported a mostly inline quarter with AI revenue up 46% Q/Q and guided to 60% Y/Y growth. The analyst said that based on good visibility from its three XPU customers, management believes this growth rate can continue into 2026. He was interested in adopting Broadcom's Ethernet products to scale up connectivity and scaling out. Scale-up unit volumes are 5x to 10x higher than scale-out, Cassidy said. The analyst noted that the applications are for both LLM training and inference. He said that with three hyper-scale customers ramping up production, management discussed the other four XPU prospects. Cassidy continued recommending the stock for its strong custom ASIC capabilities. Cantor Fitzgerald While the second-quarter results and third-quarter guide may be viewed as only a "skinny beat," underneath the covers was a very bullish outlook from Broadcom management, Cantor analyst Prisco stated. Broadcom remains Prisco's top pick. AI Semi revenues were guided at +16% Q/Q and 60% Y/Y for the third quarter, with management then suggesting improved visibility today that gives them confidence that the AI semiconductor business can grow at this ~60% rate for all of fiscal 2025 and 2026, the analyst said. He said that AI semiconductor revenues are projected to reach $20 billion+ in fiscal 2025 and $30 billion+ in fiscal 2026, delivering meaningful upside to consensus into calendar 2026. Prisco remarked that non-AI Semiconductor revenues continue to bounce along the bottom while the cash cow Infrastructure Software grows modestly. Benchmark On a relatively modest beat and raise, Broadcom's shares are off about 4% after hours as investors grapple with results that were closer to the small upside that pummelled Marvell's shares last week versus the stronger outperformance delivered by Nvidia when adjusting for their Chinese exposure, analyst Acree stated. The analyst writes that he understands investors taking profits, particularly considering the company's $120-plus run since its recent early April lows of about $139. He continues to believe Broadcom represents an attractive opportunity as the number two provider of advanced accelerated compute and networking solutions to the AI industry, with direct leverage to the steadily increasing capex budgets of a growing number of the market's largest hyperscale investors. Price Action: AVGO stock is trading lower by 5.25% to $243.28 at the last check Friday. Read Next: Taiwan Semiconductor Powers Alphawave's 2nm Chip Breakthrough For Faster AI And HPC Connectivity Photo by Ken Wolter via Shutterstock AVGOBroadcom Inc$246.50-5.17%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.61Growth38.69Quality83.31Value8.59Price TrendShortMediumLongOverviewAAPLApple Inc$203.881.62%ARMARM Holdings PLC$133.292.89%GOOGLAlphabet Inc$173.463.12%METAMeta Platforms Inc$697.631.90%NVDANVIDIA Corp$141.651.19%Market News and Data brought to you by Benzinga APIs

JPMorgan Sees Upside In Broadcom Ahead Of Earnings: Q3 Revenue Could Top $16 Billion On AI Strength - Broadcom (NASDAQ:AVGO)

Broadcom Inc AVGO is scheduled to report its fiscal second-quarter results on Thursday, June 5. The company is likely to report its quarterly results in line with slightly higher than consensus estimates, according to JPMorgan. The Broadcom Analyst: Analyst Harlan Sur maintained an Overweight rating and price target of $250. The Broadcom Thesis: The company's healthy results are likely to be driven by continued strong demand for its AI products, stabilization in the non-AI semi business and the unlocking of revenue synergy from the VMware VMW acquisition, Sur said in the note. Check out other analyst stock ratings. Backed by a higher revenue base set in the fiscal second quarter, Broadcom is likely to guide to third-quarter revenue closer to $16.1 billion, above the current Street estimates and representing 5%-7% sequential growth, he added. Broadcom's revenue growth is likely to be led by AI demand strength, with AI revenues exceeding $5 billion, higher than consensus of $4.8 billion, the analyst stated. "Broadcom remains our overall top pick in our semiconductor coverage given their exposure to AI infrastructure spending trends combined with their diversified end market exposure and best-in-class gross, operation and free cash flow margins," he further wrote. AVGO Price Action: Shares of Broadcom had risen by 2.25% to $254.30 at the time of publication on Tuesday. Read More: * Broadcom Shares Rise On New AI Tools To Help Businesses Cut Cloud Costs Photo: Shutterstock AVGOBroadcom Inc$254.372.27%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.79Growth38.74Quality80.92Value8.65Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Broadcom Stock Is Trading Lower Friday: What's Going On? - Broadcom (NASDAQ:AVGO)

Broadcom, Inc. AVGO stock is trading lower Friday. The company reported second-quarter financial results on Thursday after the market closed. The Details: Broadcom posted adjusted earnings per share of $1.58, beating the consensus estimate of $1.56 per share. In addition, the company reported sales of $15 billion, beating the consensus estimate of $14.99 billion, and representing a 20% year-over-year increase. "Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware. Q2 AI revenue grew 46% year-over-year to over $4.4 billion driven by robust demand for AI networking," said Hock Tan, President and CEO of Broadcom Inc. Furthermore, Broadcom reported cash from operations of $6.55 billion and $6.41 billion in free cash flow. it also reported that it repurchased and eliminated 25.3 million shares for $4.21 billion. Outlook: Broadcom sees second-quarter sales of $15.80 billion, versus the consensus estimate of $15.79 billion. Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments Benchmark analyst Cody Acree maintained a Buy rating on Broadcom and raised the price target from $255 to $315. Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Broadcom and raised the price target from $223 to $340. Related Link: Taiwan Semiconductor Powers Alphawave's 2nm Chip Breakthrough For Faster AI And HPC Connectivity AVGO Price Action: At the time of writing, Broadcom stock is trading 2.83% lower at $252.66, according to data from Benzinga Pro. Image: via Shutterstock AVGOBroadcom Inc$253.26-2.57%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.61Growth38.69Quality83.31Value8.59Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Broadcom Stock Slumped Today | The Motley Fool

Broadcom (AVGO -3.33%), the semiconductor company that's profited so much from the artificial intelligence (AI) revolution of late, saw its stock slump 3% through 10 a.m. ET this morning after reporting that it beat earnings last night... just barely. Heading into the company's fiscal second quarter of 2025, which ended May 4, analysts forecast Broadcom would earn $1.57 per share in adjusted profits on sales of just under $15 billion. In fact, Broadcom earned $1.58 per share, and its sales were $15 billion. Sales grew 20% year over year in Q2, setting a new quarterly record boosted by 46% year-over-year growth in revenue from AI chips. Adjusted earnings grew twice as fast, up 43%, but generally accepted accounting principles (GAAP) earnings did even better, more than doubling to $1.03 per share. (So while GAAP profits weren't nearly as good as non-GAAP, at least they're growing faster.) On the other hand, Broadcom noted that its free cash flow (FCF) in Q2 was only $6.4 billion. And while that represented 44% year-over-year growth, in line with adjusted earnings growth, it was apparently less than the $7 billion FCF that analysts had hoped Broadcom would produce. This realization seems to be outweighing the news of the earnings beat, and depressing Broadcom stock today. Should investors be worried about this? Not necessarily. While I'm not usually thrilled to see such a large gap between GAAP earnings and non-GAAP earnings, Broadcom's generating tremendous free cash flow -- $22.7 billion over the last 12 months, or nearly twice reported net income. The stock's valuation is high; its price-to-free-cash-flow ratio is 52.5. But Broadcom is growing FCF fast enough that I think the valuation might be justified -- and Broadcom stock could still be a buy.

Broadcom Stock Slips 4% as Earnings Only Slightly Beat Wall Street's Estimate Despite Strong AI Chip Sales | The Motley Fool

Shares of Broadcom (AVGO -0.44%) declined 4% in Thursday's after-hours trading, following the semiconductor and infrastructure software maker's release of its report for the second quarter of fiscal year 2025 (ended May 4). Broadcom's second-quarter earnings edged by Wall Street's expectation and revenue was in line with the consensus estimate. Third-quarter revenue guidance essentially met the Street's expectation. So why did Broadcom stock modestly decline following the release? It comes down to failing to meet investors' high expectations. Broadcom stock had surged 86% over the last year through Thursday's regular trading session, and it's priced at 40 times forward projected earnings. The stock's big run-up and its relatively pricey valuation reflect that investors have very high expectations. (As to the valuation, Nvidia stock's forward price-to-earnings (P/E) ratio is lower at 32.4, and its earnings are growing at a faster pace than Broadcom's.) So, simply meeting or barely beating Wall Street's estimates wasn't good enough for many investors. Data source: Broadcom. *Calculations by author. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q2 2025 ended May 4. Investors should focus mainly on the adjusted numbers for operating and net income, which exclude one-time items. Wall Street was looking for adjusted EPS of $1.57 on revenue of $14.96 billion, so Broadcom edged by the profit expectation and essentially met the top-line estimate. It also slightly surpassed its own revenue guidance of $14.9 billion. And it also edged by its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) outlook of 66% of revenue, as this profitability metric was 67%. The company does not provide earnings guidance. In the quarter, Broadcom generated cash of $6.56 billion running its operations, up 43% from the year-ago period. It generated free cash flow (FCF) of $6.41 billion, or 43% of revenue, up 44% year over year. It ended the quarter with cash and cash equivalents of $9.47 billion, up 2% from the prior quarter, and long-term debt of $61.8 billion. Data source: Broadcom. YOY = year over year. The semiconductor solutions segment's revenue growth was driven by continued strong demand for Broadcom's products for artificial intelligence (AI) data centers, including custom AI chips and Ethernet networking products. The custom chips are ASICs, or application-specific integrated circuits. The company's "AI revenue grew 46% year over year to over $4.4 billion," CEO Hock Tan said in the earnings release. Strength in the AI chip business was offset by continued weakness in the company's chips for end markets other than AI. Within the AI revenue, "custom AI accelerators grew double digits year on year, while AI networking grew over 70% year on year," Tan said on the earnings call. The infrastructure software segment's revenue growth was driven by continued strength in the VMware business. Broadcom acquired VMware in November 2023. For Q3 2025 (which ends early August), management expects: Going into the report, Wall Street had been modeling for Q3 revenue of $15.77 billion, so the company's revenue outlook was essentially in line with this expectation. In Q3, "we forecast AI semiconductor revenue to be $5.1 billion, up 60% year on year, which would be the tenth consecutive quarter of growth," Tan said on the earnings call. In short, Broadcom turned in another robust AI-driven quarter highlighted by adjusted EPS and free cash flow both surging 44% year over year.

Broadcom AI Revenue Soars in Q2 2025 | The Motley Fool

Broadcom Inc. (AVGO -3.33%) reported Q2 FY2025 revenue of $15 billion and consolidated adjusted EBITDA (non-GAAP) of $10 billion, driven by organic strength in AI semiconductors and VMware momentum. The company issued Q3 FY2025 guidance of $15.8 billion in revenue (non-GAAP) and reiterated expectations for its AI semiconductor business to maintain a 60% annual growth trajectory into FY2026 (non-GAAP). The following analysis highlights Broadcom's AI platform adoption, infrastructure software transformation, and disciplined capital allocation, with direct implications for long-term investors. AI semiconductor revenue reached $4.4 billion in Q2 FY2025, with AI networking representing 40% of AI segment revenue. The Tomahawk 6 switch launch delivers 102.4 Tbps capacity, positioning Ethernet at the core of cluster architecture for both scale-out and scale-up at hyperscale customers. "And accordingly, we do anticipate now our fiscal 2025 growth rate of AI semiconductor revenue to sustain into fiscal 2026." -- Hock Tan, President and CEO Maintaining 60% year-over-year AI semiconductor revenue growth into FY2026 (non-GAAP) signals continued outperformance well ahead of semiconductor industry averages, supported by enduring hyperscaler investment in both training and inference workloads, and deepening Broadcom's exposure to high-growth datacenter infrastructure spending cycles. Infrastructure software revenue rose to $6.6 billion, up 25% year over year, exceeding the $6.5 billion non-GAAP guidance. Broadcom reported that over 87% of its largest 10,000 customers have migrated to the VMware Cloud Foundation (VCF) subscription, compared to legacy perpetual licenses, cascading into double-digit ARR (annual recurring revenue) growth. "Customers are increasingly turning to VCF to create a modernized private cloud on-prem, which will enable them to repatriate workloads from public clouds while being able to run modern container-based applications and AI applications. Of our 10,000 largest customers, over 87% have now adopted VCF." -- Hock Tan, President and CEO Accelerated VCF adoption enhances the stability and quality of Broadcom's revenue streams, anchoring the VMware acquisition as a material driver of operating leverage and cash flow. Free cash flow totaled $6.4 billion, with $2.8 billion returned to shareholders via dividends and $4.2 billion through share repurchases, while gross principal debt was trimmed from $69.4 billion to $67.8 billion following the quarter. The stated priority remains deleveraging toward a target debt-to-EBITDA ratio of 2.0, with M&A plans reserved for significant, strategic opportunities requiring debt financing. "But having said all that, our use of cash outside the dividends would be, at this stage, used towards reducing our debt. And I know you're gonna ask, what about M&A? Well, kind of M&A we will do will, in our view, would be significant, would be substantial enough that we need debt." -- Hock Tan, President and CEO This methodical capital allocation signals management's commitment to balance sheet quality, maximizing financial flexibility for opportunistic expansion or buybacks. For Q3 FY2025, Broadcom guides consolidated revenue to $15.8 billion (up 21% year over year, non-GAAP), with semiconductor revenue (non-GAAP) of $9.1 billion (up 25% year over year), infrastructure software revenue (non-GAAP) of $6.7 billion (up 16% year over year), and adjusted EBITDA margin of at least 66% (non-GAAP). The company reiterates expectations for AI semiconductor revenue growth of 60% year over year (non-GAAP) to sustain into FY2026. Conversion of VMware contracts to subscription will continue for at least another year, with no update to 2027 targets provided.

Broadcom Sinks as CEO Becomes Defensive on AI Opportunity -- Should Investors Buy the Dip?

Broadcom (AVGO -4.99%) once again reported robust artificial intelligence (AI) revenue growth in its fiscal second-quarter results released this week, with promises that the strong revenue growth would continue. The stock slipped despite an upbeat outlook, although it remains up more than 75% over the past year. Let's take a closer look at Broadcom's most recent results and the AI opportunity in front of it to see whether investors should buy this small dip. Broadcom CEO gets defensive, but huge AI opportunity remains Broadcom CEO Hock Tan initially got investors excited back in December 2024 when he talked about the company having a $60 billion to $90 billion serviceable addressable market (SAM) opportunity in fiscal year 2027 with its three largest hyperscale (meaning they operate huge data centers) customers. However, when asked whether its SAM had increased, Tan told analysts he's "not playing the SAM game" and to "stop talking about SAM now." It was an unusual and defensive response from an executive who, only six months ago, was hyping Broadcom's SAM opportunity. However, Tan had said earlier that he anticipates Broadcom's current AI semiconductor revenue growth to sustain into fiscal 2026 after projecting it would grow by 60% to $5.1 billion in fiscal Q3. As one analyst on the call pointed out, that would imply $30 billion or more in AI semiconductor revenue in fiscal 2026. Much of Broadcom's AI semiconductor revenue growth is currently coming from its networking portfolio, particularly Ethernet switches. The company said its AI networking revenue surged by 170% year over year and represented 40% of its AI revenue. Perhaps, the bigger opportunity, though, is in custom AI chips. The company stated that custom AI chip revenue rose by double digits in the quarter and that it expects demand in the back half of 2026 to accelerate as inference demand surges. This is most likely coming from Alphabet, which was Broadcom's first customer for custom AI chips. However, the company said it still expects its three largest custom chip customers to each deploy 1 million AI chip clusters in 2027, mostly for training foundational AI models. Turning to Broadcom's results, its overall revenue climbed 20% year over year to $15 billion in the quarter, while adjusted earnings per share (EPS) soared 44% to $1.58 (adjusting for its prior 10-for-1 stock split). The results edged past analyst expectations for adjusted EPS of $1.56 on revenue of $14.99 billion, as compiled by LSEG. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, surged 67% year over year to $10 billion. AI-related revenue jumped 46% year over year to $4.4 billion. Total semiconductor solutions revenue rose 17% year over year to $8.4 billion, as the recovery in its non-AI chip revenue continues to be slow. Infrastructure software revenue, meanwhile, increased by 25% to $6.6 billion. The company credited the growth to strong sales of its VMware Cloud Foundation (VCF) platform and the transition of customers to subscription models. Its VCF platform helps customers create hybrid and multicloud environments, giving them the flexibility to manage workloads across both public clouds and their own on-premise data centers. Approximately 87% of VMware's top 10,000 customers have now adopted its VCF platform. Broadcom continues to generate strong cash flow, with cash flow from operations coming in at nearly $6.6 billion and free cash flow of $6.4 billion. It ended the quarter with nearly $9.5 billion in cash and equivalents and $67.3 billion in debt after buying back $4.2 billion worth of shares in the quarter. Its debt is a result of its $69 billion acquisition of VMware in 2023. Looking ahead, Broadcom forecasts fiscal Q3 revenue to increase by 21% to $15.8 billion, with semiconductor revenue rising 25% to $9.1 billion and infrastructure software revenue increasing 16% to $6.7 billion. It expects adjusted EBITDA to be about 66% of revenue, or about $10.4 billion. Should investors buy the dip? Broadcom continues to see strong AI revenue growth, led by its networking portfolio. But the best opportunity may still be in front of the company, with its custom AI chips. Only Alphabet is truly ramped up, and it has a huge opportunity with other customers. Now, Tan's sudden reluctance to talk about Broadcom's AI semiconductor SAM is disappointing, and the extent to which China's ByteDance -- one of its suspected in-progress large AI chip customers -- and the new Chinese export controls might have on that is unknown. Still, he did not back down from the growth of the company's three large hyperscale customers or that they plan to each deploy 1 million AI chip clusters in 2027. He also still has Apple as well as other customers that aren't quite as far along, which should also power growth in later years. From a valuation perspective, Broadcom now trades at a forward price-to-earnings (P/E) ratio of about 31.5, based on fiscal 2026 analyst estimates, and a price/earnings-to-growth ratio (PEG) of less than 0.4. Stocks with PEG ratios below 1 are generally considered undervalued. Given the growth opportunities still in front of it, I think investors can use this price dip to start building positions. The biggest risk would be a slowdown in spending on AI infrastructure, but we still appear to be in the early innings.

Broadcom Reports AI-Fueled Sales Growth | The Motley Fool

For its fiscal second quarter, Broadcom beat expectations (slightly) on both the top and bottom lines. Revenue for the semiconductor chip and software developer grew 20% year over year to just over $15 billion, and the company produced $4.97 billion of new income. On an adjusted basis, Broadcom generated $1.58 in earnings per share, a penny ahead of estimates. Looking beyond the headlines, the numbers look solid. Broadcom produced $6.4 billion in free cash flow, a stellar 43% margin and an all-time high for the company. Management bought back $4.2 billion in stock. When it comes to guidance, that was a positive story as well. Broadcom is projecting $15.8 billion in revenue for the third fiscal quarter, slightly ahead of what analysts had been looking for. Both of Broadcom's major business segments produced solid growth. Semiconductor solutions revenue grew 17% year over year, and infrastructure software revenue climbed by an impressive 25%. Plus, CEO Hock Tan said that management expects artificial intelligence (AI) semiconductor revenue growth to accelerate in the next quarter, which would be 10 consecutive quarters of growth in this part of the business. It might come as a bit of a surprise, but Broadcom stock's initial reaction to the earnings report was a negative one. As of 4:50 p.m. ET Thursday (about a half hour after the announcement), shares were lower by about 2%. With a beat on the top and bottom lines and better-than-expected guidance, it might seem odd for the stock to fall. However, keep in mind that Broadcom was trading just below its all-time high going into this report and had climbed by a staggering 87% from its April low, so it's possible investors were simply expecting more of a positive surprise. Broadcom's performance for the rest of 2025 will be largely dependent on AI spending. Management is reporting continued strong investment activity from its hyperscale partners, and as mentioned earlier, AI semiconductor revenue growth is expected to accelerate in the third fiscal quarter, so it will be worth keeping an eye on this to see how it actually plays out.

Broadcom's Next Stop: $30B AI Revenue (NASDAQ:AVGO)

Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google. Analyst's Disclosure:I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Broadcom: 5 Powerful Catalysts Investors Can't Afford To Miss (NASDAQ:AVGO)

Broadcom's valuation remains attractive versus peers, and its transformation into an AI infrastructure leader supports strong long-term growth potential. Semiconductors are the foundation of today's AI development, and I've been looking for a potential opportunity in the sector. Although Nvidia (NASDAQ: NVDA) leads the way with its high-performance GPUs and AI factories, I can see why some might Rick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options. The most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News, cover his work. His passion is business, and he works tirelessly to deliver content in an easy-to-understand manner. In 2018, Rick wrote The Financially Independent Millennial to inspire his readers with his story about becoming financially independent at age 35 despite not learning about money when he was younger. His books are easy to read and often refer to key points that "He would tell his younger self." When not thinking about business, Rick writes (mainly about cruise ship travel) for his travel blog and is an enthusiast of fast cars, technology, & cooking. Analyst's Disclosure:I/we have a beneficial long position in the shares of GOOGL, AAPL, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Broadcom Q2: The Quiet King Of Connectivity (NASDAQ:AVGO)

Although near-term valuation is steep, AVGO stock remains a compelling strategic investment to capture lasting AI-driven secular growth, blending semiconductor innovation with predictable software cash flows. Since my last analysis of Broadcom Inc. (NASDAQ:AVGO), the stock has grown by over 30% in price. Broadcom's latest quarterly results provide further validation of its premium position at the intersection of the AI Oliver Rodzianko is the Founder and Chief Executive Officer of Invictus Origin, a pioneering high-alpha investment management firm launched in May 2025, dedicated to becoming a globally recognized, actively managed fund. Invictus Origin is developing innovative portfolio strategies, notably through its flagship Nasdaq High-Alpha Black Swan Portfolio, strategically designed to sustainably outperform the Nasdaq-100. Distinctively, this portfolio maintains approximately 20% in strategic cash reserves, providing robust downside protection and exceptional flexibility during significant market disruptions. Oliver brings extensive experience as a macro-focused investment analyst specializing in public equities. His disciplined approach emphasizes fundamental valuation, long-term market cycles, and sector expertise in technology, semiconductors, artificial intelligence, and energy. His investment process integrates U.S. market specialization with comprehensive international market awareness.Oliver has built a strong reputation as an Investment Analyst for leading platforms including Seeking Alpha, TipRanks, and GuruFocus, consistently providing high-level, actionable insights to a broad audience of sophisticated investors, including several industry-leading public figures who engage with his work regularly. His research and portfolio management capabilities are firmly on track to consistently deliver durable outperformance, capturing asymmetric upside by strategically navigating market dislocations and intrinsic value cycles. As CEO of Invictus Origin, Oliver leverages this expertise to establish a firm characterized by resilience, performance, and disciplined capital stewardship, further supported by the ongoing development of a complementary family office structure dedicated to lower-volatility capital preservation. Analyst's Disclosure:I/we have a beneficial long position in the shares of NVDA, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Broadcom in charts:Revenue from semiconductor solutions rise by 17%Y/Y

Markets move fast -- don't get left behind! Access critical insights now " More on Broadcom Broadcom Inc. (AVGO) Q2 2025 Earnings Call Transcript Broadcom: Strong Growth From This AI Winner Broadcom: What To Watch For In The Q2 Earnings Release Broadcom forecasts $5.1B AI semiconductor revenue for Q3 2025 as AI networking demand accelerates Broadcom slips even as Q2 results, guidance top estimates Today's chaos. Tomorrow's opportunity Seeking Alpha helps you make sense of the headlines -- so you can stay on track for a stronger financial future.

Broadcom shares drop as revenue forecast fails to impress

Broadcom shares fell more than three per cent in early trading on Friday, after the company's third-quarter revenue forecast failed to impress investors who have been extremely bullish on chip stocks amid an artificial intelligence boom. The Palo Alto, California-based company, which supplies semiconductors to Apple and Samsung provides advanced networking gear that allows vast amounts of data to travel across AI data centres, making its chips crucial for the development of generative AI technology. Broadcom forecast third-quarter revenue of around US$15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "High expectations drove a bit of downside," Bernstein analyst Stacy Rasgon said in a note. Broadcom also helps design custom AI processors for large cloud providers, which compete against Nvidia's pricey off-the-shelf chips. Global chipmakers, including Nvidia, have been vulnerable to U.S. President Donald Trump's shifting trade policy and export curbs as Washington attempts to limit Beijing's access to advanced U.S. technology. "AVGO is ramping two additional customers, but they are still small. So the processor business will grow this year, but at a measured rate," said Morgan Stanley. Last week, rival Marvell Technology forecast second-quarter revenue above Wall Street estimate, betting on strong demand for its custom chips powering AI workload in data centres. Broadcom's valuation had crossed $1 trillion for the first time in December after it forecast massive expansion in demand for chips that power AI. Its shares have risen about 12 per cent so far this year. It has a 12-month forward price-to-earnings ratio of 35.36, compared with Marvell's 20.63, according to data compiled by LSEG.

JPMorgan maintains overweight rating on Broadcom stock ahead of earnings By Investing.com

On Tuesday, JPMorgan (NYSE:JPM) analysts reiterated an Overweight rating and maintained a $250.00 price target for Broadcom Limited (NASDAQ:AVGO), which currently trades near its 52-week high. According to InvestingPro data, the company has received a "GREAT" financial health score, though current analysis suggests the stock is trading above its Fair Value. Broadcom's demand profile for its artificial intelligence products, including custom ASICs and networking solutions, remains robust. The analysts also noted stabilization in Broadcom's non-AI semiconductor business, which includes sectors like enterprise, server/storage, broadband, and wireless. With impressive gross profit margins of 76.26% and revenue growth of 40.3% over the last twelve months, the company has demonstrated strong operational execution. Additionally, they highlighted ongoing revenue synergy from VMware as a positive factor. The forecast for Broadcom's April quarter revenue, earnings, and free cash flow is expected to meet or slightly exceed both JPMorgan's and consensus expectations. The analysts predict a 5-7% quarter-over-quarter revenue growth for the upcoming July quarter, driven by strong AI demand. Their revenue estimate for the July quarter stands at $16.1 billion, which is above the consensus estimate. InvestingPro subscribers can access 20+ additional key insights about Broadcom, including detailed valuation metrics and growth indicators in the comprehensive Pro Research Report. Broadcom's AI-related revenues are estimated to exceed $5 billion, surpassing the consensus estimate of $4.8 billion. This growth is attributed to the increasing demand for AI solutions, which is expected to contribute significantly to the company's financial performance. With a market capitalization of $1.19 trillion and analyst consensus remaining strongly bullish, Broadcom continues to strengthen its position as a prominent player in the semiconductor industry. In other recent news, Broadcom has made headlines with the release of its Tomahawk 6 switch series, achieving a remarkable 102.4 terabits per second of switching capacity on a single chip. This advancement is designed to support large-scale AI clusters, highlighting Broadcom's focus on AI infrastructure. Additionally, several analyst firms have shown confidence in Broadcom's prospects. Citi has raised its price target to $276, citing strong performance in the AI segment, which is expected to account for 30% of fiscal 2025 sales. Melius has maintained its Buy rating with a price target of $283, emphasizing Broadcom's strength in the networking division. Redburn-Atlantic has initiated coverage with a Buy rating and a $301 price target, highlighting Broadcom's strategic acquisition of VMware. Mizuho Securities has also increased its price target to $300, maintaining an Outperform rating and noting Broadcom's growth potential in AI Custom Silicon. These developments reflect Broadcom's significant position in the technology sector, particularly in AI and networking.

Broadcom shares drop despite upbeat guidance as AI-led chip demand continues By Investing.com

Investing.com - Broadcom fell afterhours Thursday despite reporting upbeat guidance and fiscal second-quarter results that beat analysts' forecasts on robust AI-driven demand. Broadcom Inc (NASDAQ:AVGO) shares dropped 1% in after-hours trade following the report. Broadcom announced adjusted earnings per share of $1.58 on revenue of $15 billion. Analysts polled by Investing.com anticipated EPS of $1.57 on revenue of $14.87 billion. "Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware. Q2 AI revenue grew 46% year-over-year to over $4.4 billion driven by robust demand for AI networking," said Hock Tan, President and CEO of Broadcom. Semiconductor solutions, its core business, rose 56% to $8.41B, while infrastructure software added 44%% to $6.6B. The company expects third-quarter revenue of about $15.8 billion, compared with estimates of $15.77B. Q3 adjusted EBITDA is forecast to be approximately 66% of projected revenue.

Broadcom forecasts upbeat third-quarter revenue on AI chip demand

(Reuters) -Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. The company, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. Broadcom has seen strong demand for its custom AI and networking chips, which form the backbone of artificial intelligence infrastructure. Many companies such as Google have reaffirmed their investments for the year on expanding AI infrastructure, underscoring strong demand for its custom chips. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. The company forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion. Broadcom's shares were down about 2% in volatile trading after the bell. (Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Shounak Dasgupta)

Broadcom shares drop as revenue forecast fails to impress

(Reuters) - Broadcom shares fell nearly 4% in premarket trading on Friday, after the company's third-quarter revenue forecast failed to impress investors who have been extremely bullish on chip stocks amid an artificial intelligence boom. The Palo Alto, California-based company, which supplies semiconductors to Apple and Samsung, provides advanced networking gear that allows vast amounts of data to travel across AI data centers, making its chips crucial for the development of generative AI technology. Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "High expectations drove a bit of downside," Bernstein analyst Stacy Rasgon said in a note. Broadcom also helps design custom AI processors for large cloud providers, which compete against Nvidia's pricey off-the-shelf chips. Global chipmakers, including Nvidia, have been vulnerable to U.S. President Donald Trump's shifting trade policy and export curbs as Washington attempts to limit Beijing's access to advanced U.S. technology. "AVGO is ramping two additional customers, but they are still small. So the processor business will grow this year, but at a measured rate," said Morgan Stanley. Last week, rival Marvell Technology forecast second-quarter revenue above Wall Street estimate, betting on strong demand for its custom chips powering AI workload in data centers. Broadcom's valuation had crossed $1 trillion for the first time in December after it forecast massive expansion in demand for chips that power AI. Its shares have risen about 12% so far this year. It has a 12-month forward price-to-earnings ratio of 35.36, compared with Marvell's 20.63, according to data compiled by LSEG. (Reporting by Twesha Dikshit in Bengaluru; Editing by Shilpi Majumdar)

Broadcom Bets on AI, But Market Hopes for More

Broadcom is hitching its wagon to the artificial intelligence boom with a forecast that points to robust third-quarter revenue, largely fueled by demand for networking and custom chips tailored to AI. Yet the market, jittery and perhaps a touch spoiled by soaring chip stocks, responded with a shrug. Despite a 12% climb in Broadcom shares this year, they slid 4% in after-hours trading, as Wall Street seemed underwhelmed by a revenue projection of $15.80 billion - just a sliver above the $15.71 billion consensus. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," noted Kinngai Chan, an analyst at Summit Insights Group. It appears that even solid growth isn't enough when the bar has been raised sky-high by generative AI enthusiasm. AI chips at the core Broadcom has planted its flag firmly in the AI hardware landscape. It designs highly specialized integrated circuits used by major cloud computing firms like OpenAI and Google. The recent rollout of its Tomahawk 6 networking chip - a piece of silicon that doubles the throughput of its predecessor - underscores Broadcom's focus on accelerating AI workloads across sprawling data center networks. CEO Hock Tan pointed to the AI segment as a pillar of future growth, predicting that semiconductor revenue from this area will swell to $5.1 billion in the third quarter. That would mark ten straight quarters of growth as hyperscale clients continue to pour capital into next-gen infrastructure. AI up, everything else waits The broader semiconductor segment, which includes chips for data centers and networking, grew 16.7% to $8.41 billion in Q2. Yet not all parts of Broadcom's portfolio are surging. Non-AI semiconductor revenues remain sluggish, with Tan acknowledging they are likely near the bottom of their cycle. For now, Broadcom is riding the AI wave. But in a market saturated with AI optimism, even a good wave may not be enough to dazzle.

Broadcom rides on AI chip demand to deliver upbeat revenue forecast

(Reuters) -Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology. Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion. (Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Shounak Dasgupta)