Broadcom(US:AVGO) 智通财经网·2025-12-12 00:13Core Viewpoint - Broadcom's stock price declined after the release of its Q4 earnings, primarily due to slightly disappointing AI backlog orders despite strong revenue growth [1][3]. Financial Performance - For Q4, Broadcom reported sales of $18 billion, a 28% year-over-year increase, exceeding analyst expectations of $17.5 billion [1]. - The company's earnings per share rose to $1.95, surpassing the expected $1.87 [1]. - Semiconductor revenue reached $11.07 billion, up 34.5% year-over-year, while infrastructure revenue grew 19% to $6.94 billion [1]. AI Orders and Outlook - CEO Hock Tan mentioned a backlog of $73 billion in AI product orders, which will be delivered over the next six quarters, although this figure disappointed some investors [3]. - Tan clarified that this backlog is a "minimum value" and expects significant increases in delivery volumes as more orders come in [3]. - The company anticipates Q1 sales of approximately $19.1 billion, above the analyst consensus of $18.5 billion, with AI semiconductor revenue expected to double year-over-year to $8.2 billion [3]. Stock Performance and Valuation - Broadcom's stock has surged 75% year-to-date, driven by investor optimism regarding its role in AI spending growth [5]. - The stock's valuation has reached historical highs, with a forward P/E ratio of about 42, compared to a 10-year average of 17 [5]. - The high valuation raises concerns that even strong performance may not be enough to prevent a sell-off if the market perceives it as "buy the rumor, sell the news" [5]. Market Position and Partnerships - Broadcom is benefiting from increased demand for custom chips due to large-scale data center construction, capturing a growing share in the AI chip market [9]. - The company has established partnerships with major AI model providers, including OpenAI, to supply custom chips for AI services [10]. - Broadcom's AI chip revenue grew over 70% last quarter, indicating a significant acceleration in growth [9]. Future Prospects - Broadcom is upgrading its networking equipment to enhance data transfer speeds within and between data centers, crucial for supporting complex AI models [11]. - The company collaborates with major cloud service providers like Google and Meta to design and manufacture custom AI processors, positioning itself as a key supplier in the AI infrastructure market [11]. - If Broadcom's AI business meets long-term financial goals, CEO Tan stands to gain substantial stock rewards [10].