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Given the vigor NASDAQ: AVGO Explosive movements After the last two issues of income, many investors were probably Hoping to see the fireworks again June 5.

The price action of the chigant chip would disappoint, but should not interfere with investors.

Bramyagi budget Q2 revenues were solid in all accounts.

In addition, the management provided some useful comments, despite the fact that it rejects some of the most pressing issues of analysts.

Financial indicators and leadership Broadcom were right for money

Both on top and in the lower line, the results of the Broadcom Fiscal Q2 2025 reached exactly in accordance with the expectations. The company’s income of $ 15 billion led to an increase of above 20%. This barely exceeded expectations of growth a little less than 20%. The adjusted profit of the company per share in the amount of $ 1.58 in the amount of $ 1.57.

The drawing brought to Revenue growth rate is less than 44%superior growth estimates are slightly less than 43%.

From the point of view of management, the company Predictable income of approximately 15.8 billion dollars. USA For fiscal Q3. This implies growth rate of 21%, and sprinkles.

Broadcom also predicted the adjusted profit before interest, taxes, depreciation and margin of depreciation (EBITDA) will reach at least 66%. This implies a small reduction of 67% of the indicator that he reached in the financial Q2.

Tan is engaged: the business remains prosperous, but seismic updates are not disclosed

The Chief Executive Director (General Director) Hawke Tan said that the three hyper-ghost-clients of the company and four potential of them are “unshakable” in their investment plans for artificial intelligence. This is true even with current macroeconomic problems. The company supported this by providing Ay semiconductor guide of 5.1 billion US dollars In Fiscal Q3, which would make an increase of 60%.

In addition, the company confirmed that, based on current visibility, it expects that these growth rates will continue within 2025 and the financial 2026. This A particularly positive signIndicating that demand will not slow down in the near future.

Nevertheless, to the chagrin of analysts, Tang firmly refused to give an idea of ​​when income contributions for their potential customers could come. Tan said that the company most likely will not provide updates on this subject until in 2026 fiftants. He also refused to provide which updates to evaluate the company’s targeted market (SAM).

Tang provided noticeable news about the software segment for the company’s infrastructure, especially when it comes to moving VMware customers from eternal subscription licenses. This was the key to the success of the company’s software.

Movement of customers Subscriptions increase repeating incomeField

It also raises them into a more complete package. Now 87% of the 10,000 largest VMware customers of the company switched to the subscription model, which has increased significantly compared to 70% quarter ago. Tan added that two -thirds of the common client base crossed, Moderately compared with 60% in the last quarterField

Another interesting event was the income from AI of the company. This became strong at 40% of the total income from AI, as well as in the previous quarter. The company expected that this figure would fall closer to 30%, but this is not so. The company continues to lead the fact that on average the AI ​​network over time is about 30% of the total income from AI.

Tan said that the company is experiencing a positive surprise in the AI ​​network. He said that architecture of servers of data centers “scale”, which are increasingly using Ethernet. The scale belongs to when server racks pack the denser chips.

Meanwhile, “scalable” architectures increase the computing capacity, adding more server racks in the data center. Large-scale architecture requires 5-10 times higher than the density of switching than scalable architectures. This creates a significant need for the new Switch 6 Company Tomahawk 6 chips, which offer the advanced port density and throughput.

Broadcom shares fall moderately, but are barely left for all the time

By The end during the time of tradeThere were shares down about 4%The field of Broadcom Drop is shows a slight disappointment in its financial indicators. It also indicates that there was no innovative news in the call.

However, it is difficult to be too disappointed. Promotions were traded very close to the record maximum to the result.

Upon completion of trade in non -working hours, Shares have decreased less than 5% From them, a high level closes all the time. The market will want to see much greater blows to send soaring shares, as in the last quarter.

Obtaining additional information about the contribution from potential customers AI-Chip can also help. Potential modernization of analysts can also increase shares, since information from these income is even more digested. In general, things in Broadcom go according to plan.

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