🔍 AVGO: Broadcom Is Becoming More Than a Networking Play Broadcom’s AI numbers are getting hard to ignore. AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4. But there’s another shift happening underneath those numbers. Semiconductor solutions now generated 70% of Broadcom’s total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%. That means Broadcom’s growth mix is changing quickly. The interesting question isn’t-To The Moon - Tiger Brokers Online Investing Community

🔍 AVGO: Broadcom Is Becoming More Than a Networking Play Broadcom’s AI numbers are getting hard to ignore. AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4. But there’s another shift happening underneath those numbers. Semiconductor solutions now generated 70% of Broadcom’s total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%. That means Broadcom’s growth mix is changing quickly. The interesting question isn’t

$Broadcom(AVGO)$ AI numbers are getting hard to ignore.

AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4.

But there’s another shift happening underneath those numbers.

Semiconductor solutions now generated 70% of Broadcom’s total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%.

That means Broadcom’s growth mix is changing quickly.

The interesting question isn’t simply whether custom AI chips can compete with GPUs.

It’s whether Broadcom can build a durable business around customers designing increasingly specialised AI infrastructure.

And the cash flow is worth watching. Broadcom generated $13.7B of free cash flow in Q3, equal to 46% of revenue, while non-GAAP operating income rose 92% year over year.

So the ASIC story isn’t just about revenue growth anymore.

It’s about whether this new mix can keep producing cash at scale.

That’s what I’d be watching over the next few quarters.

Broadcom’s AI numbers are getting hard to ignore.

AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4.

But there’s another shift happening underneath those numbers.

Semiconductor solutions now generated 70% of Broadcom’s total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%.

That means Broadcom’s growth mix is changing quickly.

The interesting question isn’t simply whether custom AI chips can compete with GPUs.

It’s whether Broadcom can build a durable business around customers designing increasingly specialised AI infrastructure.

And the cash flow is worth watching. Broadcom generated $13.7B of free cash flow in Q3, equal to 46% of revenue, while non-GAAP operating income rose 92% year over year.

So the ASIC story isn’t just about revenue growth anymore.

It’s about whether this new mix can keep producing cash at scale.

That’s what I’d be watching over the next few quarters.

Broadcom's $16.7B AI Engine Faces Margin Test — Is the ASIC Trade Still Attractive?

Broadcom (AVGO) rose 1.58% Tuesday as the market examined whether its $16.7 billion AI custom chip engine can translate surging ASIC order volumes into proportional earnings quality — the margin test is now the central debate. With a $16.7 billion AI engine now facing a margin test, is Broadcom's ASIC story a launchpad for further re-rating, or a revenue-growth-without-earnings-quality concern?

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