Broadcom(US:AVGO) CMS·2025-06-06 15:11Investment Rating - The report maintains a recommendation for Broadcom (AVGO.O) [6] Core Insights - Broadcom reported record revenue of $15.004 billion for FY2025Q2, a year-over-year increase of 20% and a quarter-over-quarter increase of 1%, driven by strong AI semiconductor business and VMware's growth momentum [1][13] - The company expects revenue for FY2025Q3 to be approximately $15.8 billion, representing a year-over-year increase of 21% and a quarter-over-quarter increase of 5%, with AI revenue projected to grow by 60% year-over-year [3][22] Revenue Breakdown - Semiconductor revenue reached $8.4 billion, accounting for 56% of total revenue, with a year-over-year growth of 17% [2][18] - AI semiconductor revenue exceeded $4.4 billion, showing a year-over-year increase of 46%, while non-AI semiconductor revenue was $4 billion, down 5% year-over-year [2][16] - Infrastructure software revenue was $6.6 billion, representing 44% of total revenue, with a year-over-year growth of 25% [2][17] Future Guidance - For FY2025Q3, semiconductor revenue is expected to be $9.1 billion, with AI semiconductor revenue projected at $5.1 billion, reflecting a 60% year-over-year increase [3][22] - The company anticipates continued growth in AI semiconductor revenue into FY2026, driven by demand for custom AI accelerators [4][15] Operational Highlights - The gross margin for FY2025Q2 was 79.4%, exceeding previous guidance, with a year-over-year increase of 3.2 percentage points [1][18] - The company reported an adjusted EBITDA of $10 billion for FY2025Q2, a year-over-year increase of 35% [13][19] Market Position - Broadcom's AI business is supported by three major customers and four potential customers, with expectations for significant deployments of custom AI accelerators by 2027 [4][15] - The launch of the Tomahawk6 switch chip, offering Ethernet switching capacity of 102.4 Tbps, is designed to meet the demands of AI processor clusters [4][14]