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AVGO Stock delivers, but there are no fireworks this time

Broadcom today

Broadcom Inc.
246.95 dollars 12.98 (-4.99 %)

As of 6/6/2025 03:59 pm

52 weeks
128.50 dollars

265.43 dollars

Profit
0.96 %

P/E ratio.
201.43

The target price
$ 270.25

Looking at Broadcom’s Nasdak: AVGO Explosive After previous profits, many investors are likely to be He hopes to see fireworks again On June 5.

The work of the chips giant will disappoint, but the investors should not be inhibited.

The profits of the second quarter of Broadcast were strong from all accounts.

In addition, the administration provided some useful comments, although some urgent questions were deviated from analysts.

Broadcom’s financial statements and directions were right to money

Both are in the top and bottom, Broadcom’s Q2 2025 financial results It came in almost one line with expectations. The company’s revenues of $ 15 billion led to a growth above 20 %. This barely overcomes growth forecast slightly lower than 20 %. The profits of the amending company per share are of $ 1.58, which are 1.57 dollars.

The number led to The profit growth rate is less than 44 %Exceeding growth estimates less than 43 %.

In terms of guidance, the company Expected revenues of about 15.8 billion dollars For the financial year Q3. This means 21 % growth, and spray higher than estimates.

Broadcom also expected its modified profits before benefits, taxes, consumption, and consumption (EBITDA) for the margin “at least” 66 %. This means a small contraction of the number 67 % in the financial Q2.

Tan takes: The work is still prosperous, but seismic updates have not been revealed

The CEO (CEO) Hawk Tan said that the three excessive customers of the company and four potential numbers are “not shaken” in their investment plans of artificial intelligence. This is true even with the challenges of the current macroeconomic economy. The company supported this by providing Semiconductor guidance from artificial intelligence at a value of $ 5.1 billion In the Q3 fiscal year, which will be a 60 % increase.

In addition, the company confirmed that based on the current vision, it expects this growth rate to continue during the fiscal year 2025 and Fiscal 2026. This is a A particularly positive signThis indicates that the request is not expected to slow down soon.

However, to the anger of analysts, Tan refused to firmly make an insight when revenue contributions come to its potential customers. Tan said that the company is likely to not make updates on this matter until some time in the 2026 fiscal year. He also refused to provide any kind of update to the SAM market estimates (SAM).

Tan has provided prominent news about the company’s infrastructure programs, especially when it comes to the transfer of VMWAR’s customers from permanent licenses to subscriptions. This was the key to the success of the company program.

Transfer customers into Subscriptions enhance repeated revenues.

It also weakens them into a more comprehensive package. Now, 87 % of the 10,000 VMWARE customers have moved to the subscription form, significantly from JUST 70 % a quarter of. Tan added that two -thirds of the total customer base had moved, A moderate increase of 60 % in the last quarter.

One of the most prominent interest in the company’s artificial intelligence network revenues in the company. This came with 40 % of the total revenue of artificial intelligence, the same as the previous quarter. The company expected this number to decrease to 30 %, but it did not. The company continues to direct this, on average, that artificial intelligence networks will make up about 30 % of the total artificial intelligence revenues over time.

Tan said that the company was suffering from a positive surprise in the networks of artificial intelligence. He said that the structure of the “expansion” data center is increasingly adopted. The expansion indicates when the server shelves package is more intense calculation chips.

Meanwhile, the “Scale-Out” structures of computing capacity increases by adding more server shelves through a data center. The expansion structure requires 5 to 10 times the density of the switch is higher than the evaluation structure. This creates a great need for the new high -capacity SWITCH slices for the company, which provides the density of ports and the domain display.

Broadcom participates in an aggressive decrease

Broadcom shares expectations today

The stock price expectations for 12 months:
$ 270.25
Moderate purchase
Based on 29 analyst classifications
The current price 246.95 dollars
High expectations $ 340.00
Average expectations $ 270.25
Low expectations 190.00 dollars

Broadcom

by The end of trading after working hoursThe stocks were About 4 % decrease. Broadcom’s share is shown in moderate disappointment in its financial data. It also indicates the fact that there is no leading news in the call.

However, it is difficult to be disappointed. The stock was trading near the highest level ever before the result.

At the conclusion of trading after working hours, The stocks decreased less than 5 % From closing them at all. The market will want to see much larger rhythms to send high stocks, as in the previous seasons.

Getting more information about potential AI-Customer customers can also make a trick. Possible analysts may also push the shares higher as information is digested from these profits. In general, things go in Broadcom according to the plan.

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