Broadcom(US:AVGO) Huachuang Securities·2025-06-08 10:35Investment Rating - The report maintains a "Recommendation" rating for the technology sector in A-shares, expecting the industry index to outperform the benchmark index by more than 5% in the next 3-6 months [35]. Core Insights - The delivery of Broadcom's Tomahawk 6 (TH6) switch chip marks a significant breakthrough in AI infrastructure, enhancing network capabilities and addressing bottlenecks in AI computing [17][19]. - The communication industry has shown strong performance, with a 5.27% increase in the index, outperforming the CSI 300 index by 4.40 percentage points [9][11]. - Broadcom's Q2 FY25 financial results indicate a 20% year-on-year revenue growth, driven primarily by the strong performance of its AI business [23][24]. Summary by Sections Industry Basic Data - The communication industry comprises 124 stocks with a total market value of 48,971.71 billion and a circulating market value of 21,813.38 billion [2]. Relative Index Performance - The absolute performance over 1 month, 6 months, and 12 months is 7.2%, 2.2%, and 30.5% respectively, while the relative performance is 5.5%, 4.7%, and 22.7% [3]. Market Review - The communication sector has outperformed both the CSI 300 and ChiNext indices this week, with notable stock performances including Huamai Technology (+33.74%) and ST Zhongjia (+33.33%) [6][14]. Broadcom TH6 Chip Delivery - The TH6 chip offers a switching capacity of 102.4 Tbps, doubling the current market standard and increasing throughput by six times compared to its predecessor [17][18]. Financial Analysis of Broadcom - Broadcom's Q2 FY25 revenue reached 15 billion USD, with AI business revenue at 4.4 billion USD, reflecting a 46% year-on-year increase [23][24]. Investment Recommendations - Key recommendations include China Mobile, China Telecom, and China Unicom for operators, and New Yisheng, Tianfu Communication, and Zhongji Xuchuang for optical modules and chips [29].