The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Ligent Technologies, Inc. 納真科技公司 (the "Company") (Registered by way of continuation in the Cayman Islands with limi ...

Core Viewpoint - Broadcom's stock has increased nearly 600% over the past five years, primarily driven by aggressive acquisitions and strong sales of AI chips, positioning it as a potential top stock to buy in 2026 as the AI market expands [1] Financial Performance - From fiscal 2020 to fiscal 2025, Broadcom's revenue grew at a 22% CAGR from $23.9 billion to $63.9 billion, while adjusted EBITDA rose at a 26% CAGR from $13.6 billion to $43.0 billion [2] Growth Catalysts - Two main catalysts for Broadcom's growth include the expansion of its infrastructure software business through significant acquisitions, such as the 2023 acquisition of VMware, and increased sales of networking, optical, and custom accelerator chips to data centers for AI applications [3] - In fiscal 2025, Broadcom's AI chip revenue surged 65% to $20 billion, representing 31% of its total revenue, which helped offset slower growth in its non-AI chip and infrastructure software sectors [4] Future Growth Prospects - Broadcom aims to achieve annualized AI chip revenues of $60 billion to $90 billion by the end of fiscal 2027, primarily driven by three hyperscale customers, indicating strong demand for custom AI accelerators [5] - The company is expected to continue acquiring more firms to strengthen its AI chipmaking and infrastructure software divisions, while its non-AI chip businesses are projected to benefit from growth in mobile, automotive, and industrial sectors [6] Analyst Expectations - From fiscal 2025 to fiscal 2028, analysts predict Broadcom's revenue and adjusted EBITDA will grow at CAGRs of 38% and 36%, respectively, as these growth drivers take effect [7] - With an enterprise value of $1.65 trillion, Broadcom is considered reasonably valued at 26 times this year's adjusted EBITDA [7]

Core Insights - Nvidia has experienced significant changes in demand due to the rise of AI, particularly with the launch of ChatGPT, leading to a shift in its customer base from PC gamers to data centers that require high computing power [2][4] - The pricing of Nvidia's chips has surged, with the latest GB200 Blackwell Superchip priced at up to $70,000, resulting in operating margins increasing to 62% from pre-ChatGPT levels [3][5] - Analysts project Nvidia's profits could triple by 2028, potentially increasing its justified share value to around $250 [5] Nvidia's Market Position - Nvidia's stock has risen dramatically, but it is considered expensive with only a 32% upside to fair value from current levels [5] - The company has a history of volatility, having fallen at least 50% in 13 of the 26 years since going public [2] Competitors and Alternatives - Broadcom is recognized as a leader in custom AI accelerator chips, but its stock has also risen significantly, limiting future gains [7][8] - Marvell Technology is highlighted as a competitor with substantial upside potential, trading at a lower price-to-sales ratio compared to Broadcom, with projections of a 76% upside [9][10] Semiconductor Industry Dynamics - Taiwan Semiconductor Manufacturing Co. (TSMC) is a key player in the semiconductor industry, producing advanced chips for major companies like Nvidia and Apple [14] - TSMC has a monopoly on 4-nanometer chip production, achieving high yields compared to competitors like Samsung [16][17] - TSMC's revenue is expected to grow in the mid-20% range annually, with AI revenues projected to increase by 50% annually [18] Government Investment and Future Trends - The U.S. government is heavily investing in semiconductor technology, with TSMC receiving significant grants and loans for domestic chip manufacturing [21] - There is a focus on six core sectors for future government funding, including semiconductors, as part of a broader strategy to maintain technological leadership [22][24]