Key TakeawaysBroadcom shares tumbled nearly 7% in extended trading on Thursday after the chipmaker posted fiscal third-quarter results that topped expectations but issued light revenue guidance for the current quarter.The stock sits positioned to break down from a symmetrical triangle pattern on Friday following the company's weaker-than-expected sales outlook, potentially starting a new trend lower.Investors should monitor important lower price levels on Broadcom's chart at $141, $120, $104, and $91. Broad ...

Financial Data and Key Metrics - Consolidated net revenue for Q3 2024 was $13.1 billion, up 47% YoY, with operating profit up 44% YoY [5] - Q3 infrastructure software segment revenue was $5.8 billion, up 200% YoY, driven by $3.8 billion from VMware [7] - Q3 semiconductor revenue was $7.3 billion, up 5% YoY, with gross margins at 68%, down 270 basis points YoY [14] - Q3 free cash flow was $4.8 billion, representing 37% of revenue, and adjusted EBITDA was $8.2 billion or 63% of revenue [15] - Q4 guidance includes consolidated revenue of $14 billion, up 51% YoY, with adjusted EBITDA expected to be 64% of revenue [12][17] Business Line Performance - Networking revenue in Q3 was $4 billion, up 43% YoY, driven by strong demand for AI networking and custom AI accelerators [8] - Wireless revenue in Q3 was $1.7 billion, up 1% YoY, with expectations of over 20% sequential growth in Q4 [10] - Broadband revenue declined 49% YoY to $557 million in Q3, with continued weakness expected in Q4 [11] - Industrial resales in Q3 were $164 million, down 31% YoY, with a sequential recovery expected in Q4 [11] Market Performance - AI revenue in Q3 was $3.1 billion, with expectations of $3.5 billion in Q4, representing 10% sequential growth [9][12] - Non-AI networking revenue was up 17% sequentially in Q3, though down 41% YoY, with a moderated decline of 30% expected in Q4 [9] - Server storage connectivity revenue in Q3 was $861 million, up 5% sequentially but down 25% YoY, with mid to high-single-digit sequential growth expected in Q4 [10] Strategic Direction and Industry Competition - The company is focused on integrating VMware, with VMware Cloud Foundation (VCF) bookings reaching $2.5 billion in Q3, up 32% sequentially [7] - AI demand remains strong, with AI revenue expected to reach $12 billion for fiscal 2024, up from prior guidance of over $11 billion [12] - The company is reducing VMware spending, targeting adjusted EBITDA of $8.5 billion within three years of the acquisition [8] - The semiconductor segment is seeing a recovery in non-AI markets, with AI demand driving growth in custom accelerators and networking [9][12] Management Commentary on Business Environment and Outlook - The company expects strong growth in AI revenue in fiscal 2025, driven by hyperscalers and digital natives [21][36] - Non-AI semiconductor markets have bottomed out, with recovery expected in Q4 and into 2025 [31][32] - Broadband and industrial markets remain weak, but recovery is anticipated in 2025 [11][32] Other Important Information - The company ended Q3 with $10 billion in cash and $72.3 billion in gross principal debt, with plans to repay $1.9 billion of fixed-rate senior notes in Q4 [16] - Q3 cash dividends were $2.5 billion, with Q4 dividends expected to be $0.53 per share [17] - The company is focused on reducing floating-rate debt and managing inventory levels across the ecosystem [15][16] Q&A Session Summary Question: AI Revenue Mix and Growth Outlook - AI revenue in Q3 was $3.1 billion, with a mix of two-thirds compute and one-third networking, expected to continue in Q4 [20][21] - The company expects strong AI revenue growth in fiscal 2025, driven by hyperscalers and digital natives [21][36] Question: Shift in AI Revenue from Cloud to Enterprise - The company does not focus on the enterprise AI market, with products primarily targeting hyperscalers and cloud providers [23][24] Question: VMware Business Performance - VMware bookings are accelerating, with a focus on converting customers to subscription licenses and VCF, expected to continue into 2025 [26][27] Question: Non-AI Semiconductor Recovery - Non-AI semiconductor markets have bottomed out, with recovery expected in Q4 and into 2025, driven by enterprise data center spending [29][31] Question: AI Revenue Growth and Customer Base - AI revenue in Q3 was in line with expectations, with growth in Q4 driven by hyperscalers and digital natives [35][36] Question: VMware Profitability - VMware's operating margin is improving, with Q3 revenue of $3.8 billion and operating expenses of $1.3 billion, expected to continue improving in Q4 [49][50] Question: Custom AI Revenue and Customer Contribution - The company has three meaningful customers for custom AI accelerators, with production volumes expected to grow in 2025 [55][56] Question: Storage Business and Seagate Partnership - The company's partnership with Seagate focuses on advancing hard disk drive technology, with a goal of reaching 50 terabytes within five years [58][60] Question: Participation in NVIDIA's Blackwell Product Cycle - The company is not directly involved in NVIDIA's Blackwell roadmap but may provide optical components and DSPs for interconnects [62][63] Question: M&A Strategy - The company is focused on integrating VMware and does not anticipate further M&A in the near term [65][66] Question: AI Demand and Supply Constraints - The company is seeing upside demand for AI accelerators and networking, with the ability to meet supply requirements [68][69] Question: Trend Towards Custom ASICs in AI - The company believes hyperscalers will increasingly adopt custom ASICs for AI workloads, while enterprises will continue to rely on merchant silicon [72][76]

Today’s normal stock market trading session was mixed today, with a slight gain on the Nasdaq of +0.25% offset by a -0.30% drop in the S&P 500, -0.54% on the Dow and -0.61% on the small-cap Russell 2000. Things had looked more promising during the morning hours, but couldn’t hold onto gains across the board.Services Sector Results for August: Better than ExpectedBoth monthly reports from the overall Services sector — ISM Services and S&P Services PMI — came in ahead of expectations this morning, and both ab ...

Broadcom Inc. (AVGO) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.20 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.33%. A quarter ago, it was expected that this chipmaker would post earnings of $1.08 per share when it actually produced earnings of $1.10, delivering a surprise of 1.85%.Over the last four quarters, the company ha ...

G0d4ather I presented my "Sell" thesis on Broadcom Inc. (NASDAQ:AVGO) in my previous coverage in June 2024, noting that aside from AI and VMware, Broadcom's legacy businesses declined by 15% in revenue. Broadcom released its Q3 result on September 5th after the market close, projecting $12 billion in AI revenue for FY24. While I am optimistic about their custom ASCI and AI networking businesses, I remain concerned about their legacy software portfolio, as well as the integration of VMware. I maintain a "Sel ...

Key TakeawaysBroadcom posted a loss in its fiscal third quarter, primarily due to acquisition-related amortization costs.The company is continuing to integrate the software firm VMWare, which it acquired in November.The company's fiscal fourth-quarter guidance came up just short of analysts' expectations. Broadcom (AVGO) shares fell after the closing bell Thursday, sliding following quarterly results that swung to a loss due to increased merger-related expenses. The semiconductor manufacturing company poste ...

Broadcom reported fiscal third-quarter results on Thursday that beat Wall Street expectations for revenue and earnings.Broadcom shares fell 5% in extended trading.Here is how the chipmaking conglomerate did versus LSEG consensus estimates for the quarter ending Aug. 4:Earnings per share: $1.24 adjusted vs. $1.20 expectedRevenue: $13.07 billion vs. $12.97 billion expectedBroadcom expects current-quarter revenue of $14 billion, versus $1.36 per share on $14.04 billion expected.Broadcom reported a net loss of ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Exhibit 99.1 Broadcom Inc. Announces Third Quarter Fiscal Year 2024 Financial Results and Quarterly Dividend • Revenue of $13,072 million for the third quarter, up 47 percent from the prior year period • GAAP net loss of $1,875 million for the third quarter ; Non-GAAP net income of $6,120 million for the third quarter • Adjusted EBITDA of $8,223 million for the third quarter, or 63 percent of revenue • GAAP diluted loss per share of $0.40 for the third quarter; Non-GAAP diluted EPS of $1.24 for the third qu ...

Revenue of $13,072 million for the third quarter, up 47 percent from the prior year periodGAAP net loss of $1,875 million for the third quarter (1); Non-GAAP net income of $6,120 million for the third quarterAdjusted EBITDA of $8,223 million for the third quarter, or 63 percent of revenueGAAP diluted loss per share of $0.40 for the third quarter; Non-GAAP diluted EPS of $1.24 for the third quarterCash from operations of $4,963 million for the third quarter, less capital expenditures of $172 million, resulte ...