Broadcom(US:AVGO) Shanxi Securities·2025-12-18 08:40Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected performance exceeding the benchmark index by over 10% [1][37]. Core Insights - Broadcom's FY25 Q4 financial report shows revenue of $18.02 billion, a 28% year-over-year increase, with adjusted EBITDA of $12.12 billion, up 34%, both surpassing market expectations. The semiconductor segment generated $11.1 billion, reflecting a 35% growth, driven by AI semiconductor revenue of $6.5 billion, which surged 74% year-over-year. The company has accumulated orders totaling $73 billion, with expectations for revenue to reach $19.1 billion in the next quarter, including a potential doubling of AI chip revenue to $8.2 billion [3][13][14]. Summary by Sections Industry Trends - The communication industry has seen significant market performance over the past year, with a notable increase in orders and revenue from key players like Broadcom. The demand for custom and network chips is rising, with a backlog of orders expected to increase further [2][3][14]. Market Overview - The overall market experienced an increase during the week of December 8-12, 2025, with the Shenwan Communication Index rising by 6.27%. The top-performing sectors included optical cables and modules, with significant gains observed in individual stocks such as Dekeli and Lian Te Technology, which saw increases of 43.66% and 27.67%, respectively [7][16][26]. Future Outlook - Looking ahead to 2026-2027, the market consensus anticipates a substantial increase in the shipment of 800G optical modules, projected to reach over 63 million units, representing a growth of 2.6 times. The development of Scaleup and supporting technologies is expected to drive further growth in the optical communication sector [4][14]. Recommended Companies - The report suggests focusing on specific companies within various segments: - Google Chain: Zhongji Xuchuang, Changxin Bochuang, Huiju Technology, Guangku Technology, Lian Te Technology - Scaleup Optical: Tianfu Communication, Taicheng Light, Shijia Photonics, Guangku Technology, Zhishang Technology, Yuanjie Technology, Changguang Huaxin - Commercial Aerospace: Chaojie Co., Aerospace Power, Sry New Materials, Xinke Mobile, Fenghuo Communication, Tongyu Communication - Satellite Terminals: Haige Communication, Dongzhu Ecology, Mengsheng Electronics, China Satellite, Guobo Electronics, Weijie Chuangxin [7][16].