Broadcom(US:AVGO) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-05 15:16Core Viewpoint - Broadcom reported impressive earnings for Q3 of fiscal year 2025, driven by strong demand for AI-related products, particularly custom ASIC chips, which are tailored for cloud service providers [1][3]. Financial Performance - Broadcom achieved revenue of $15.952 billion for Q3, a 22% year-over-year increase, exceeding the previous guidance of $15.8 billion [1]. - Adjusted net profit reached $10.702 billion, reflecting a 30.15% year-over-year growth [1]. - AI business revenue for the quarter was $5.2 billion, up 63% year-over-year, slightly above the previous quarter's guidance of $5.1 billion [1]. Market Dynamics - The demand for ASIC chips is rising as they are better suited for specific AI inference needs compared to general-purpose GPUs [2][5]. - Broadcom's XPU business accounted for 65% of its AI revenue in Q3, with significant orders from major clients expected to drive future growth [3][4]. - The ASIC chip market is anticipated to grow as AI applications expand, potentially surpassing the AI training market [4][5]. Competitive Landscape - NVIDIA and AMD are also exploring opportunities in the ASIC chip market, indicating a competitive environment where both GPU and ASIC technologies will coexist and evolve [2][6]. - Major cloud service providers are developing their own ASIC chips to meet specific needs, highlighting the ongoing shift towards customized solutions [5][6]. - The overall market for AI ASICs is expected to grow at a CAGR of 52% from 2023 to 2028, potentially surpassing GPU shipments by 2028 [7].