Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

<ul>
<li>Oracle: results were decent. Management released a huge Remaining Performance Obligation number aka future AI Infra revenue. That spooked the market. </li>
<li>Broadcom: a very good quarter, AI semi revenue guidance back on track. But Broadcom will reach its 2027 revenue target ($60-90bn) with 5 customers, not 3.</li>
<li>Results and outlook (for both) were ok to good; market reaction very negative.  1) the AI narrative is dead  2) the correction is especially steep for expensive stocks  </li>
</ul>


Oracle: results were decent. Management released a huge Remaining Performance Obligation number aka future AI Infra revenue. That spooked the market. 
Broadcom: a very good quarter, AI semi revenue guidance back on track. But Broadcom will reach its 2027 revenue target ($60-90bn) with 5 customers, not 3.
Results and outlook (for both) were ok to good; market reaction very negative.  1) the AI narrative is dead  2) the correction is especially steep for expensive stocks  


Oracle, Broadcom: Communication Errors – Bullish Tone when the Market Only Hear Concerns

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Broadcom shares surged nearly 10% after the semiconductor and software giant announced a landmark deal with OpenAI to build and deploy 10 gigawatts of custom AI accelerators.</li><li>Under this multibillion-dollar agreement, OpenAI will design the chips while Broadcom provides connectivity and Ethernet components—a strategic collaboration set to roll out from late 2026 through 2029.</li><li>This announcement came just weeks after a broader AI spending spree by OpenAI, including contracts with Oracle, Nvidia, and AMD.</li></ul>

Broadcom shares surged nearly 10% after the semiconductor and software giant announced a landmark deal with OpenAI to build and deploy 10 gigawatts of custom AI accelerators.Under this multibillion-dollar agreement, OpenAI will design the chips while Broadcom provides connectivity and Ethernet components—a strategic collaboration set to roll out from late 2026 through 2029.This announcement came just weeks after a broader AI spending spree by OpenAI, including contracts with Oracle, Nvidia, and AMD.

Broadcom’s Landmark Deal With OpenAI Sends Shares Soaring—What’s Next?

<ul>
<li>FY24 AI revenue as guided US$12.2bn. 1Q25 AI revenue to increase 65% YoY. FY27 “serviceable market” or “opportunity” could reach US$60-90bn. Actual revenues could be ~70% of that.</li>
<li>Mngt announced another 2 hyperscale customers (one is Apple). At least 1 new new customer could add significant revenues before FY27 (adding to the 60-90bn above). </li>
<li>Stock up 14% aftermarket, trading at 32x FY25 EPS. We expect Consensus EPS to revise up 10-20%. Nvidia trades at 32x next FY (FY26). Positive to suppliers Hynix and TSMC.</li>
</ul>


FY24 AI revenue as guided US$12.2bn. 1Q25 AI revenue to increase 65% YoY. FY27 “serviceable market” or “opportunity” could reach US$60-90bn. Actual revenues could be ~70% of that.
Mngt announced another 2 hyperscale customers (one is Apple). At least 1 new new customer could add significant revenues before FY27 (adding to the 60-90bn above). 
Stock up 14% aftermarket, trading at 32x FY25 EPS. We expect Consensus EPS to revise up 10-20%. Nvidia trades at 32x next FY (FY26). Positive to suppliers Hynix and TSMC.


Broadcom: AI Hyper-Growth to Continue – Worries of a Slowdown Are Wrong – Positive to SK Hynix, TSMC

<ul><li>Broadcom Inc.'s recent financial results reflect significant developments within the technological landscape, with notable growth, strategic advancements, and some areas of slow recovery.</li><li>Positively, Broadcom reported a substantial increase in revenue for its third quarter of fiscal year 2025, achieving a record $16 billion, a 22% rise year-on-year.</li><li>This growth was propelled primarily by the strength of its AI semiconductor business and continuing expansion with VMware.</li></ul>

Broadcom Inc.'s recent financial results reflect significant developments within the technological landscape, with notable growth, strategic advancements, and some areas of slow recovery.Positively, Broadcom reported a substantial increase in revenue for its third quarter of fiscal year 2025, achieving a record $16 billion, a 22% rise year-on-year.This growth was propelled primarily by the strength of its AI semiconductor business and continuing expansion with VMware.

Broadcom’s AI Juggernaut: How Custom Accelerators Are Driving Growth

<ul><li>Broadcom Inc. has delivered a strong performance in its fiscal second quarter, reporting a record $15 billion in revenue, representing a 20% year-over-year growth.</li><li>This robust showing was largely driven by its AI semiconductor business, which saw a 46% year-over-year increase, and the successful integration of VMware, whose infrastructure software sales rose 25% year-over-year.</li><li>Broadcom’s AI networking segment, in particular, saw tremendous momentum with a 170% surge in revenue, bolstered by the launch of the Tomahawk 6 switch.</li></ul>

Broadcom Inc. has delivered a strong performance in its fiscal second quarter, reporting a record $15 billion in revenue, representing a 20% year-over-year growth.This robust showing was largely driven by its AI semiconductor business, which saw a 46% year-over-year increase, and the successful integration of VMware, whose infrastructure software sales rose 25% year-over-year.Broadcom’s AI networking segment, in particular, saw tremendous momentum with a 170% surge in revenue, bolstered by the launch of the Tomahawk 6 switch.

Broadcom Tops $1.2 Trillion—But Cracks Are Showing Beneath the AI Hype!

United States

Broadcom Inc. designs, develops, and supplies semiconductor and infrastructure software solutions. The Company offers storage adapters, controllers, networking processors, motion control encoders, and optical sensors, as well as infrastructure and security software to modernize, optimize, and secure the most complex hybrid environments. Broadcom serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Broadcom (AVGO US)

Oracle, Broadcom: Communication Errors – Bullish Tone when the Market Only Hear Concerns

Oracle and Broadcom had decent results, but market reacted negatively to Oracle's future AI revenue and Broadcom's reliance on 5 customers to...

Nicolas Baratte

Broadcom’s Landmark Deal With OpenAI Sends Shares Soaring—What’s Next?

Broadcom shares surged nearly 10% after the semiconductor and software giant announced a landmark deal with OpenAI to build and deploy 10...

Baptista Research

Broadcom: AI Hyper-Growth to Continue – Worries of a Slowdown Are Wrong – Positive to SK Hynix, TSMC

Broadcom strong growth potential in AI revenue continues. US$12.2bn AI revenues in FY24 , could grow to a market opportunity of $60-90bn in FY27....

Nicolas Baratte

Broadcom’s AI Juggernaut: How Custom Accelerators Are Driving Growth

Broadcom Inc.'s recent financial results reflect significant developments within the technological landscape, with notable growth, strategic...

Baptista Research

Broadcom Tops $1.2 Trillion—But Cracks Are Showing Beneath the AI Hype!

Broadcom Inc. has delivered a strong performance in its fiscal second quarter, reporting a record $15 billion in revenue, representing a 20%...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Oracle, Broadcom: Communication Errors – Bullish Tone when the Market Only Hear Concerns

​Oracle and Broadcom had decent results, but market reacted negatively to Oracle's future AI revenue and Broadcom's reliance on 5 customers to...

Nicolas Baratte

Broadcom’s Landmark Deal With OpenAI Sends Shares Soaring—What’s Next?

Broadcom shares surged nearly 10% after the semiconductor and software giant announced a landmark deal with OpenAI to build and deploy 10...

Baptista Research

Broadcom: AI Hyper-Growth to Continue – Worries of a Slowdown Are Wrong – Positive to SK Hynix, TSMC

Broadcom strong growth potential in AI revenue continues. US$12.2bn AI revenues in FY24 , could grow to a market opportunity of $60-90bn in FY27....

Nicolas Baratte

Broadcom’s AI Juggernaut: How Custom Accelerators Are Driving Growth

Broadcom Inc.'s recent financial results reflect significant developments within the technological landscape, with notable growth, strategic...

Baptista Research

Broadcom Tops $1.2 Trillion—But Cracks Are Showing Beneath the AI Hype!

Broadcom Inc. has delivered a strong performance in its fiscal second quarter, reporting a record $15 billion in revenue, representing a 20%...

Baptista Research

Oracle and Broadcom had decent results, but market reacted negatively to Oracle's future AI revenue and Broadcom's reliance on 5 customers to...