Broadcom(US:AVGO)2025-09-06 07:23Summary of Broadcom Inc. (AVGO) Conference Call Company Overview - Company: Broadcom Inc. (AVGO) - Industry: Semiconductors and Infrastructure Software Key Financial Results - 3Q Revenue: $16.0 billion, above Goldman Sachs (GS) estimate of $15.9 billion and Street estimate of $15.872 billion [2] - Gross Margin: 78.4%, in line with GS at 78.5% and above Street at 78.2% [2] - Operating Margin: 65.5%, matching GS and Street estimates of 65.4% [2] - Operating EPS: $1.69, slightly below GS at $1.73 but above Street at $1.67 [2] - AI Semiconductor Revenue: $5.2 billion, in line with GS and above Street [2] - Semiconductor Solutions Revenue: $9.2 billion, matching GS and above Street [2] - Infrastructure Software Revenue: $6.8 billion, above both GS and Street estimates [2] Guidance for 4Q - Revenue Guidance: $17.4 billion, above GS at $17.3 billion and Street at $17.0 billion [3] - AI Semiconductor Revenue Guidance: $6.2 billion, above GS at $5.6 billion and Street at $5.7 billion [3] - Adjusted EBITDA Margin Guidance: 67%, above GS at 66.3% and Street at 66.2% [3] Market Outlook and Investor Focus - Stock Performance: Expected to trade up modestly following solid quarter and above Street guidance [1] - Key Focus Areas for Investors: - Contribution of XPU in 3Q and 4Q - Updates on FY26 AI revenue target - Progress on onboarding new XPU customers - Recovery pace in enterprise business [1] Price Target and Risks - 12-Month Price Target: $340, based on a 38X P/E multiple applied to normalized EPS estimate of $9.00 [4] - Key Risks: - Slowdown in AI infrastructure spending - Share loss in custom compute franchise - Persistent inventory digestion in non-AI segments - Increased competition in VMware [4] Additional Insights - Quarterly Performance: Year-over-year revenue growth of 22% and quarter-over-quarter growth of 6.3% [7] - AI Semiconductor Performance: 3Q AI Semiconductor revenue was 0.4% above GS and 2.2% above Street estimates [7] - Future Projections: Revenue projections for the next fiscal years indicate significant growth, with expected revenues of $51.57 billion in FY25 and $63.15 billion in FY26 [8] This summary encapsulates the essential financial metrics, guidance, market outlook, and risks associated with Broadcom Inc. as discussed in the conference call.