In today’s briefing:
- AVGO Results Good. 55-60% AI Growth in 2025, Same in 26. Consensus Is ~10% Too Low, Stock Expensive
- Guidewire’s Cloud Takeover: How It’s Winning Big With Insurers & Crushing Legacy Systems!
- CrowdStrike Is Replacing Legacy Cybersecurity With Adaptive Models & Lightning-Fast Threat Detection; What’s The Revenue Impact?
- UiPath Inc.: Expansion in Vertical & Public Sector Markets to Diversify Revenue Streams!
- FS.COM Limited Pre-IPO Tearsheet
- Hewlett Packard Enterprise (HPE) Cuts Jobs—Why Is The Management Focused On Building A Leaner Tech Giant?
- Innovatiview India Ltd Pre-IPO – Growth Amid Cash Flow Pressures
- How Is Synopsys Thriving Globally While China Sales Decline—What’s the Real Strategy?
- HP Inc.: Expansion of Personal Systems With AI PCs Is The CLEAR WAY FORWARD!
- UMC (2303.TT; UMC.US): Gloomy Outlook for 3Q25.
AVGO Results Good. 55-60% AI Growth in 2025, Same in 26. Consensus Is ~10% Too Low, Stock Expensive
- 2025 AI revenue ~US$19bn, up 55-60% YoY. Similar growth in 2026 or $~30bn. Mngt declined to update 2027 addressable market (SAM), previously stated at $60-90bn. That looks too high.
- Risk of disappointment for 2027? No, Consensus is too low. Our estimate for 2026 revenue is $79bn versus consensus at $73bn, $95bn in ’27 vs Consensus $83.
- Consensus for AI stocks is too low. But AVGO is expensive at 33x FY26 Consensus, most likely ~30x and ~25x 2027 if I’m correct. That’s more expensive than NVDA.
Guidewire’s Cloud Takeover: How It’s Winning Big With Insurers & Crushing Legacy Systems!
- Guidewire Software, Inc.’s latest financial results for the third quarter of fiscal year 2025 demonstrate a mix of robust performance and strategic progress.
- The company reported a record-breaking quarter in terms of sales activities, showcasing strong demand for its cloud offerings, with Annual Recurring Revenue (ARR) reaching $960 million.
- Notably, Guidewire expects to surpass the $1 billion ARR milestone by the end of the fiscal year, indicating significant traction and growth in their subscription model.
CrowdStrike Is Replacing Legacy Cybersecurity With Adaptive Models & Lightning-Fast Threat Detection; What’s The Revenue Impact?
- CrowdStrike Holdings, Inc., a leader in cybersecurity, delivered a robust performance in its fiscal first quarter of 2026, demonstrating both strengths and challenges.
- The company’s headline achievement was its double-digit million-dollar addition to net new ARR, significantly surpassing expectations and reaching an ending ARR of $4.4 billion.
- This milestone reinforces its stature as a dominant player in pure-play cybersecurity software at scale.
UiPath Inc.: Expansion in Vertical & Public Sector Markets to Diversify Revenue Streams!
- UiPath, a leader in robotic process automation (RPA), recently reported its first-quarter results for fiscal 2026, highlighting both progress and challenges amidst a variable macroeconomic environment.
- The company announced revenue of $357 million, a modest year-over-year increase of 6%, and an annual recurring revenue (ARR) of $1.693 billion, reflecting a 12% increase.
- While these figures exceeded expectations, it’s important to dive deeper into the dynamics driving these results.
FS.COM Limited Pre-IPO Tearsheet
- FS.COM Limited (FS) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC, China Sec, and CMS.
- FS is the world’s second largest online DTC networking solution provider in terms of revenue in 2024, as per Frost & Sullivan (F&S).
- It focuses on providing general networking solutions and high-performance networking solutions mainly to the US and Europe, serving more than 450,000 customers and covering approx. 60% of Fortune 500 companies.
Hewlett Packard Enterprise (HPE) Cuts Jobs—Why Is The Management Focused On Building A Leaner Tech Giant?
- Hewlett Packard Enterprise’s fiscal 2025 second quarter performance presents a mixed bag of outcomes, reflecting both areas of improvement and ongoing challenges.
- Revenue reached $7.6 billion, showing a 7% year-over-year increase, which exceeded the upper bound of the company’s guidance.
- This growth was driven by strong revenue performance across all product segments, notably in AI systems and Intelligent Edge.
Innovatiview India Ltd Pre-IPO – Growth Amid Cash Flow Pressures
- Innovatiview India Ltd (INNOVATIVIEWINDIA IN) (IIL) is planning to raise about US$230m in its upcoming India IPO.
- IIL is a technology-driven provider of automated ancillary security and surveillance solutions for examinations, elections, and large-scale events across India.
- As of Sep 24, IIL was the largest player in examination integrated security solutions in India, according to F&S Report.
How Is Synopsys Thriving Globally While China Sales Decline—What’s the Real Strategy?
- Synopsys Inc. reported a robust second quarter for fiscal year 2025, showcasing substantial strength in revenue growth and operational execution.
- The company achieved a 10% year-over-year revenue increase, reaching $1.6 billion, surpassing the midpoint of its forecast.
- Non-GAAP earnings per share (EPS) also exceeded expectations, underlining the efficacy of Synopsys’ business model amid challenging market conditions.
HP Inc.: Expansion of Personal Systems With AI PCs Is The CLEAR WAY FORWARD!
- The earnings report for HP Inc.’s second quarter of fiscal year 2025 presents a mixed picture, reflecting both growth and challenges.
- On the positive side, HP has shown remarkable progress in revenue growth, with an increase of 5% year-over-year in constant currency.
- This marks the fourth consecutive quarter of revenue growth, largely driven by strong performance in the Personal Systems segment, especially in the commercial sector.
UMC (2303.TT; UMC.US): Gloomy Outlook for 3Q25.
- United Microelectron Sp Adr (UMC US) is likely to exceed its 2Q25 guidance by 5–10%, while the outlook for 3Q25 appears somewhat gloomy, with a flat quarter-over-quarter (QoQ) performance likely.
- Qualcomm Inc (QCOM US) and NVIDIA Corp (NVDA US) are allocating a few thousand 12” wafers at UMC, but it appears to be the end of the product cycle.
- Samsung Electronics (005930 KS), for example, has been relatively aggressive in wafer procurement in 2Q25, which could lead to a pullback in 3Q25.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
