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Yahoo
4 days ago
- Business
- Yahoo
Broadcom Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Broadcom AVGO reported second-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, surpassing the Zacks Consensus Estimate by 0.64% and increasing 43.6% year over revenues increased 20% year over year to $15 billion, surpassing the Zacks Consensus Estimate by 0.37%. Broadcom's revenue growth in the second quarter of fiscal 2025 was driven by strong performance in AI semiconductors and VMware revenues benefited from continued investments from hyperscale partners in AI XPUs and connectivity solutions for AI data shares lost 4.01% in after-hours trading to $249.50 following the fiscal second-quarter results. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote Semiconductor solutions revenues (56% of net revenues) totaled $8.4 billion, rising 17% year over year and missing the Zacks Consensus Estimate by 0.17%. AI-related revenues grew 46% year over year to $4.4 billion, which was a major driver of overall revenue growth. This growth was driven by higher shipments of networking solutions to hyperscalers for AI semiconductor revenues declined 5% year over year to $4 the second quarter of fiscal 2025, broadband, enterprise networking and server storage revenues were up revenue was down in the second quarter of fiscal 2025, while wireless revenue also decreased due to software revenues (44% of net revenues) rose 25% year over year to $6.6 billion, bolstered by the successful conversion of enterprise customers to the full VMware Cloud Foundation(VCF) software stack subscription. The non-GAAP gross margin was 79%, expanding 320 basis points (bps) year over and development, as a percentage of net revenues, decreased 210 bps year over year to 10.2%. Selling, general and administrative expenses also decreased 280 bps to 4%.Adjusted EBITDA increased 35% year over year to $10 billion. The adjusted EBITDA margin expanded 720 bps on a year-over-year basis to 66.7%.The non-GAAP operating margin grew 800 bps year over year to 65.3%. As of May 4, 2025, cash and cash equivalents were $9.47 billion compared with $9.31 billion as of Feb. 2, debt (including the current portion of $5.53 billion) was $67.28 billion as of May 4, 2025, compared with $66.58 billion as of Feb. 2, generated $6.55 billion in cash flow from operations compared with $6.11 billion in the previous quarter. The free cash flow was $6.41 billion compared with $6.01 billion in the prior of March 31, 2025, the company paid out a cash dividend of $0.59 per share of common stock, totaling $2.78 billion. For third-quarter fiscal 2025, Broadcom expects revenues of $15.8 billion, suggesting an increase of 21% from the prior-year period's semiconductor revenues are projected to grow 60% year over year to $5.1 billion, whereas non-AI semiconductor revenues are expected to reach $4 Software revenues are expected to grow 16% year over year to $6.7 revenues are anticipated to grow 25% year over year to $9.1 the third quarter of fiscal 2025, enterprise networking and broadband are expected to continue to grow storage, wireless and industrial are expected to be largely EBITDA is expected to be 66% of projected company anticipates the non-GAAP diluted share count to be 4.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, Broadcom carries a Zacks Rank #2 (Buy). Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 33.2% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 1.5% over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4.4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.08 in the past 30 days, suggesting year-over-year growth of 20.93%.UPWK shares have lost 7.7% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Channel Post MEA
02-06-2025
- Business
- Channel Post MEA
Broadcom Refines Partner Strategy And Program
Broadcom has refined its partner strategy and program over the past 18 months to align with its go-to-market mission to deliver the industry-leading private cloud platform that fuels its customers' innovation. The focus is on partners that can lead customers through transformation to a modern private cloud and help them unlock the full potential of VMware Cloud Foundation (VCF), said Brian Moats, Senior Vice President, Global Commercial Sales and Partners at Broadcom. As a result of this strategic direction and a comprehensive partner review, Broadcom is reducing the number of partners authorized to resell VMware solutions in the Americas, and Asia-Pacific and Japan regions. This decision will enable Broadcom to focus on deepening its relationships with those partners who are committed to delivering the transformative customer experience around VMware solutions, as demonstrated by their historical performance levels, technical and other relevant expertise, and ability to make the investments necessary to offer customers the levels of service they expect and deserve, says Moats. To enable more focused investment and deeper support for these partners, the Broadcom Advantage Partner Program for VMware Resellers is being streamlined from four to three tiers: Pinnacle, Premier and Select. The Registered tier is being retired, as the vast majority of customer impact and business momentum comes from partners operating within the top three tiers. Enhanced program requirements The requirements for participation in the program are also being increased: Pinnacle partners will be required to hold Expert Advantage Professional Services Partner status, demonstrating advanced capability in the deployment and implementation of VCF. Alternatively, partners can qualify by maintaining a dedicated Small and Medium Business practice that supports scalable adoption. Pinnacle and Premier partners will be required to maintain dedicated sales and technical resources, ensuring they are equipped to support customer engagements across the lifecycle. Pinnacle and Premier partners will execute joint business plans with VMware to ensure alignment and delivery with mutual results. All partners must remain active and in good standing. Partners who no longer meet the minimum program requirements or have not demonstrated consistent engagement will be transitioned As a result of this streamlining, some customers will need to transition to a new partner relationship. That's why the partners selected to move forward with Broadcom will carry a greater responsibility and a higher standard of performance. Broadcom is entrusting this focused group with a broader set of customers and, in return, expect them to lead with excellence, operate at scale, and deliver real impact on the journey to a modern private cloud. These developments give customers access to a stronger, more capable partner ecosystem —one built to support IT modernization, fast-track AI initiatives, and strengthen cyber resilience, all powered by VMware Cloud Foundation, according to Moats. For partners, this is an opportunity to differentiate on value. With more customer opportunities, retained partners will have a more relevant and impactful role in the VMware business. 0 0
Yahoo
29-05-2025
- Business
- Yahoo
Top Stock Picks for Week of May 26, 2025
Broadcom (AVGO) is a premier designer, developer and global supplier of a broad range of semiconductor devices. Broadcom is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom's application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth. Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom's largest 10,000 customers have adopted VMware Cloud Foundation. Broadcom's expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. Broadcom generates significant cash flow that enables it to pay out consistent dividend. In terms of earnings estimate revisions for Broadcom Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.62. Centrus Energy Corp. (LEU) is a supplier of enriched uranium fuel for commercial nuclear power plants. Earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. There has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. Thanks to promising estimate revisions, Centrus Energy currently carries a Zacks Rank #1 (Strong Buy). Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Centrus Energy Corp. (LEU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-04-2025
- Business
- Yahoo
Prediction: Broadcom Stock Could Surge by 100% in the Next 3 Years
When looking at stocks with some of the strongest upside potential over the next few years, Broadcom (NASDAQ: AVGO) tops the list. The chipmaker has been caught in the recent market sell-off, down around 20% in 2025 as of this writing. However, the stock is still up more than 45% over the past year. Let's look at why Broadcom's stock could double, or more, over the next three years. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Broadcom operates in two segments: semiconductor solutions and infrastructure software. Originally focused solely on hardware, the company entered the software business through various acquisitions over the past few years, including CA Technologies, Symantec, and most recently VMware. With CA Technologies, the company acquired a large portfolio of mainframe and enterprise software solutions, while Symantec brought it an enterprise security business. It biggest acquisition, though, was VMware, which it acquired in November 2023 for $69 billion. VMWare is a market leader in virtualization and cloud computing solutions. Its core virtualization product allows multiple virtual machines to be run on a single server, helping save customers costs. Meanwhile, its VMware Cloud Foundation (VCF) platform helps customers build hybrid and multicloud environments where they can manage workloads across public clouds and their own on-premise data centers. Broadcom has set out to transform VMware by streamlining its operations and product solutions, while transitioning customers from perpetual licenses to a subscription model. At the end of its fiscal first quarter, it had transitioned 60% of its customers to a subscription model. In the process, it has also been upselling customers from its compute virtualization product, vSphere, to its VCF platform. As a result, Broadcom's infrastructure software revenue climbed 47% to $6.7 billion last quarter and it forecast the segment to grow by 23% in fiscal Q2. Its software businesses should be a solid contributor moving forward, especially as enterprise customers start to turn to hybrid cloud environments to run artificial intelligence (AI) workloads. On the hardware side, Broadcom makes components for various markets, including wireless devices, broadband internet, and automotive. However, its two most important businesses are networking and ASICs (application-specific integrated circuits). Within its networking business, Broadcom makes components such as ethernet switches, optical receivers, digital signal processors (DSPs), and network interface cards (NICs). These components are critical parts of AI infrastructure. Ethernet switches let AI chips rapidly exchange massive amounts of data, while optical receivers and DSPs work together to send data across longer distances. NICs, meanwhile, help connect servers to a network. Together, these components are essential in managing the flow of data and distributing AI workloads across servers and ensuring that high-performance computing resources are being best utilized. As AI chip clusters grow in size and complexity, these components become even more important in helping maintain performance and efficiency. Given the growing size of AI chip clusters, Broadcom's networking business has strong growth prospects ahead. However, Broadcom's ASICs business represents its biggest opportunity. With this business, Broadcom helps customers create their own custom AI chips designed for specific tasks. Custom AI chips have better performance and consume less power than the mass-market graphic processing units (GPUs) from Nvidia, which are the primary chips used to train AI models and run inference. The downside is that there are a lot of upfront costs involved and it takes time to design a custom chip. These chips are also less flexible than GPUs, which can be programmed for a variety of tasks. However, with the skyrocketing cost of Nvidia's GPUs, more companies have been turning to Broadcom to help them design custom AI chips. While custom chips require significant upfront costs, their reduced power consumption can lead to a lower overall cost of ownership over time. Broadcom's first custom AI chip customer was Alphabet, for which it helped design the Tensor Processing Unit (TPU). These chips were developed specifically to optimize AI workloads within Google Cloud's TensorFlow framework, and have been highly successful at optimizing AI workloads and reducing costs. Broadcom's success with Alphabet has led to a slew of new custom AI chip customers. The company sees its three AI chip customers furthest along in their development having a $60 billion to $90 billion serviceable market opportunity in its fiscal year 2027 (ending October 2027) alone. Meanwhile, it has added several other custom AI chip customers along the way, including Apple. While Broadcom won't capture this entire market opportunity, it should lead to very strong growth in the coming years. Broadcom generated $51.6 billion in revenue in fiscal 2024, so if it were able to capture a nice chunk of its custom AI chip opportunity (say, $40 billion in additional revenue) and continue to grow VMware, it perhaps could grow its revenue to surpass $100 billion in fiscal 2027. At a 75% gross margin and few other added expenses, that could add an additional $10 in earnings per share (EPS) to the $4.87 in adjusted EPS it produced in fiscal year 2024. Let's assume some added expenses and round down its fiscal 2027 EPS to $14.50. With Apple and other customers likely coming on in fiscal 2028, let's assume another $15 billion in revenue growth and add another $2.25 in EPS in fiscal year 2028, bringing the total to $16.75. With a 25 times forward price-to-earnings (P/E) multiple at the end of 2027 on $16.75 in fiscal 2028 EPS, the stock would be worth more than $400 in three years. The stock currently trades at a forward P/E of near 28 times, so that multiple seems appropriate. As such, Broadcom's stock looks like it has a nice opportunity to more than double in the coming years helped by a surge in custom AI chip and networking revenue and the continued growth of VMware. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Prediction: Broadcom Stock Could Surge by 100% in the Next 3 Years was originally published by The Motley Fool
Yahoo
18-04-2025
- Business
- Yahoo
Incident Prediction Strengthens AVGO's Portfolio: Is the Stock a Buy?
Broadcom AVGO introduced Incident Prediction, which extends the security feature of Adaptive Protection, a unique capability of Symantec Endpoint Security Complete (SES-C), on Tuesday. The AI-powered protection helps in predicting and disrupting living-off-the-land attacks and other cyberthreats. SES-C is an integrated endpoint security platform that delivers cloud-based protection with AI-guided security management, all on a single agent/console Prediction leverages a deep learning model that is trained on more than 500,000 real-world attack events. Apart from enhancing Adaptive Protection, Incident Chain reduces the burden on SOC analysts and minimizes business disruption, all while providing comprehensive resilience against advanced cyber threats. Incident Prediction will help Broadcom provide enterprise-grade security to all organizations, irrespective of a mature SOC or a small security focus on delivering AI-powered, proactive security to stay ahead of evolving cyber threats has been noteworthy. In March 2025, AVGO introduced updates to VMware vDefend, improving security planning, lifecycle management, and scalability for VMware Cloud Foundation (VCF) with new tools like the Security Segmentation Assessment and Report, optimized micro-segmentation, and advanced Network Detection and Response, all aimed at improving threat prevention and operational efficiency. These updates have shown notable benefits, including a 40% reduction in cyber breach risk and a 116% return on investment (ROI) for organizations using VMware vDefend. AVGO shares have dropped 22.8% year to date, underperforming the Zacks Computer & Technology sector's decline of 13.9%. The company has been suffering from the ongoing sell-off in technology stocks amid rising fears of a recession following U.S. President Donald Trump's decision to levy tariffs on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war. Technology companies, including Broadcom, import key parts to international markets, which makes them vulnerable to a trade war. Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote However, we believe the dip offers a massive opportunity for investors to buy the stock. Growth-oriented investors should ignore the near-term headwinds due to an expanding portfolio and rich partner rich partner base, including NVIDIA, ANET, Alphabet GOOGL, META Platforms META, DELL Technologies DELL, Juniper and Supermicro, has been a key catalyst. Strong demand for Broadcom's application-specific integrated chips (ASICs), designed to support AI and machine learning and make these tasks more efficient, aids top-line growth. Alphabet and Meta Platforms are notable users of Broadcom's and Dell Technologies have a long-standing partnership that integrates Broadcom's VMware Cloud Foundation for hyperconverged infrastructure solutions, while expanding into AI networking and connectivity to enhance Dell's AI-driven hardware factors are expected to drive strong AI revenues. AVGO expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. Semiconductor revenues are expected to surge 17% year over year to $14.9 billion. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $6.60 per share, up 0.6% over the past 30 days, indicating 35.52% year-over-year consensus estimate for fiscal second-quarter earnings is pegged at $1.57 per share, increased by a penny over the past 30 days, indicating 42.73% year-over-year earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.44%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Broadcom's strong portfolio, along with an expanding partner base, reflects solid top-line growth potential over the long currently sports a Zacks Rank #1 (Strong Buy) and a has Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
