Broadcom(US:AVGO) Di Yi Cai Jing·2025-06-06 00:05Core Insights - Broadcom's CEO Hock Tan highlighted that three customers are expected to deploy clusters of 1 million AI accelerator chips by 2027 for model training, indicating a strong demand for inference as well [1][3] Financial Performance - For Q2 FY2025, Broadcom reported revenue of $15.004 billion, a 20% year-over-year increase, surpassing previous guidance of $14.9 billion and market expectations of $14.97 billion [1][2] - GAAP net income reached $4.965 billion, reflecting a 134% increase year-over-year, while adjusted EBITDA was $10.001 billion, up from $7.429 billion in the previous year [2] - The gross margin stood at 79.4%, exceeding prior performance guidance [1] Segment Performance - Semiconductor solutions revenue was $8.408 billion, a 17% increase year-over-year, while infrastructure software revenue was $6.596 billion, growing by 25% [2] - AI-related revenue exceeded $4.4 billion, marking a 46% year-over-year growth, driven by strong demand for AI networks [3][4] AI Business Outlook - Broadcom anticipates AI semiconductor revenue to accelerate to $5.1 billion in Q3 FY2025, continuing a growth trend for ten consecutive quarters [2][3] - The company is a key supplier of custom ASICs and Ethernet network components, with major clients including Google and Meta [2][3] Product Developments - Broadcom announced the delivery of the next-generation Tomahawk 6 switch chip, which has an Ethernet switching capacity of 102.4 terabits per second, doubling the performance of its predecessor [3] - The transition from copper to optical connections in large clusters is expected to have significant implications for performance [4] Market Position and Valuation - Broadcom's market capitalization reached $1.22 trillion, surpassing TSMC's market cap of $1.05 trillion [5] - Despite strong financial results, Broadcom's stock price fell by 0.44% on June 5, 2023, and dropped approximately 4% in after-hours trading [5]