AVGO Broadcom Inc.

Ji Yoo (Head of Investor Relations): Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; Charlie Kawwas, President, Semiconductor Solutions Group; and Ram Velaga, President, Infrastructure Software Group. Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the first quarter fiscal year 2026. If you did not receive a copy, you may obtain the information from the Investor section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our first quarter fiscal year 2026 results, guidance for our second quarter of fiscal year 2026 as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock. Hock Tan (President and CEO): Thank you, Ji, and thank you, everyone, for joining us today. In our fiscal Q1 2026, total revenue reached a record $19.3 billion, and that’s up 29% year-on-year and exceeding our guidance on the back of better-than-expected growth in AI semiconductors. This top line strength translated into exceptional profitability with Q1 consolidated adjusted EBITDA hitting a record $13.1 billion, which is 68% of revenue. These figures demonstrate that our scale continues to drive significant operating leverage. Now we expect this momentum to accelerate as our custom AI XPUs hit their next phase of deployment among our 5 customers. So looking ahead to next quarter Q2 '26, we're guiding for consolidated revenue of approximately $22 billion, which represents 47% year-on-year growth. Let me now give you more color on our semiconductor business. In Q1, revenue was a record $12.5 billion as year-on-year growth accelerated to 52%. This robust growth was driven by AI semiconductor revenue, which grew 106% year-on-year to $8.4 billion, well above our outlook. In Q2, this momentum accelerates, and we expect semiconductor revenue to be $14.8 billion, up 76% year-on-year. Driving this is AI revenue growth, which will accelerate sharply to 140% year-on-year to $10.7 billion. Now our custom accelerator business grew 140% year-on-year in Q1. This momentum continues in Q2. The ramp of custom AI accelerators across all our 5 customers is progressing very well. For Google, we continue our trajectory of growth in '26 with strong demand for the seventh-generation Ironwood TPU. In 2027 and beyond, we expect to see even stronger demand from the next generations of TPU. For Anthropic, we are off to a great start in 2026 for 1 gigawatt of TPU compute. And for '27, this demand is expected to surge in excess of 3 gigawatts of compute. Our XPU franchise, I should add, extends beyond TPUs. Now contrary to recent analyst reports, Meta's custom accelerator MTIA roadmap is alive and well. We're shipping now. In fact, for the next-generation XPUs, we will scale to multiple gigawatts in '27 and beyond. Rounding off for customers 4 and 5, we see strong shipments this year, which we expect to more than double in 2027. We also now have a sixth customer. We expect OpenAI to deploy their first-generation XPU in volume in 2027 at over 1 gigawatt of compute capacity. Let me take a second to emphasize that our collaboration with these 6 customers to develop AI XPUs is deep, strategic, and multi-year. We bring to the partnerships unmatched technology in SerDes, silicon design, process technology, advanced packaging, and networking to enable each of these customers to achieve optimal performance for their differentiated LLM workloads. We have the track record to deliver these XPUs in high volumes at an accelerated time to market with very high yields. Beyond technology, we provide multi-year supply agreements as our customers scale up deployment of their compute infrastructure. Our ability to assure supply in these times of constrained capacity in leading-edge wafers, high-bandwidth memory, and substrates ensures the durability of our partnerships, and we have fully secured capacity of these components for '26 through '28. Consistent with the strong outlook for our XPUs, demand for AI networking is accelerating. Q1 AI networking revenue grew 60% y ... [transcript truncated at 5,000 chars — full text available via API]

Ji Yoo (Head of Investor Relations): Welcome to Broadcom Inc.'s Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Coaz, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the fourth quarter and fiscal year 2025. If you did not receive a copy, you may obtain the information from the investor section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared remarks, Hock and Kirsten will be providing details of our fourth quarter and fiscal year 2025 results, guidance for 2026, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I'll now turn the call over to Hock. Hock Tan (President and CEO): Thank you everyone for joining us today. Well, we just ended our Q4 fiscal 2025. And before I get into details of that quarter, let me recap the year. In our fiscal 2025, consolidated revenue grew 24% year over year, to a record $64 billion, driven by AI semiconductors and VMware. AI revenue grew 65% year over year to $20 billion, driving the semiconductor revenue for this company to a record $37 billion for the year. In our infrastructure software business, strong adoption of VMware Cloud Foundation, or VCF as we call it, drove revenue growth of 26% year on year to $27 billion. In summary, 2025 was another strong year for Broadcom. And we see the spending momentum by our customers for AI continuing to accelerate in 2026. Now let's move on to the results of our fourth quarter 2025. Total revenue was a record $18 billion, up 28% year on year and above our guidance on better than expected growth in AI semiconductors as well as infrastructure software. Q4 consolidated adjusted EBITDA was a record $12.12 billion, up 34% year on year. So let me give you more color on our two segments. In semiconductors, revenue was $11.1 billion as year on year growth accelerated to 35%. This robust growth was driven by AI semiconductor revenue of $6.5 billion, which was up 74% year on year. This represents a growth trajectory exceeding 10 times over the eleven quarters we have reported this line of business. Our customer accelerated business more than doubled year over year as we see our customers increase adoption of XPUs, as we call those customer accelerators, in training their LLMs and monetizing their platforms through inferencing APIs and applications. These XPUs, I may add, are not only being used to train and inference internal workloads by our customers. The same experience in some situations has been extended externally to other LLM peers. Best exemplified at Google where the TPUs used in creating Gemini are also being used for AI cloud computing by Apple, Cohere, and SSI as a sample. The scale at which we see this happening could be significant. As you are aware, last quarter, Q3 2025, we received a $10 billion order to sell the latest TPU ironwood racks to Anthropic. This was our fourth customer that we mentioned. In this quarter Q4, we received an additional $11 billion order from this same customer for delivery in late 2026. But that does not mean our other two customers are using TPUs. In fact, they prefer to control their own destiny by continuing to drive their multiyear journey to create their own custom AI accelerators or XPU RECs as we call them. I am pleased today to report that during this quarter, we acquired a fifth XPU customer through a $1 billion order placed for delivery in late 2026. Now moving on to AI networking. Demand here has even been stronger as we see customers build out their data center infrastructure ahead of deploying AI accelerators. Our current order backlog for AI switches exceeds $10 billion as our latest 102 terabyte terabit per second Tomahawk six switch, the first and only one of its capability out there, continues to book at record rates. This is just a subset of what we have. We have also secured record orde ... [transcript truncated at 5,000 chars — full text available via API]

Ji Yoo (Head of Investor Relations): Welcome to Broadcom Inc. Third Quarter fiscal year 2025 financial results conference call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Please go ahead. Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Coaz, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for 2025. If you did not receive a copy, you may obtain the information from the investors section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our third quarter fiscal year 2025 results, guidance for our 2025, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock. Hock Tan (President and CEO): Thank you, Ji. And thank you everyone for joining us today. In our fiscal Q3 2025, total revenue was a record $16 billion, up 22% year on year. Now revenue growth was driven by better than expected strength in AI semiconductors, and our continued growth in VMware. Q3 consolidated adjusted EBITDA was a record $10.7 billion, up 30% year on year. Now, looking beyond what we are just reporting this quarter, with robust demand from AI bookings was extremely strong. And our current consolidated backlog for the company hit a record of $110 billion. Q3 semiconductor revenue was $9.2 billion as year on year growth accelerated to 26% year on year. And this accelerated growth was driven by AI semiconductor revenue of $5.2 billion, which was up 63% year on year and extended the trajectory of robust growth to 10 consecutive quarters. Now let me give you more color on our XPU business, which accelerated to 65% of our AI revenue this quarter. Demand for custom AI accelerators from our three customers continued to grow as each of them journeys at their own pace towards compute self-sufficiency. And progressively, we continue to gain share with these customers. Now, further to these three customers, as we have previously mentioned, we have been working with other prospects on their own AI accelerators. Last quarter, one of these prospects released production orders to Broadcom. And we have accordingly characterized them as a qualified customer for XPUs. And in fact, has secured over $10 billion of orders of AI rigs based on our XPUs. And reflecting this, we now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter. Turning to AI networking. Demand continued to be strong. Because networking is becoming critical as LLMs continue to evolve in intelligence and compute classes have to grow bigger. The network is the computer. And our customers are facing challenges as they scale to clusters beyond 100,000 compute nodes. For instance, scale up which we all know about, is a difficult challenge. When you are trying to create substantial bandwidth to share memory across multiple GPUs or XPUs. Earlier this year, we launched Tomahawk five. We've opened Ethernet, which can scale up to 512 compute nodes for customers using XPUs. Moving on to scaling out across regs. Today, the current architecture using 51.2 terabits per second requires three tiers of networking switches. In June, we launched Tomahawk six and our Ethernet-based 102 terabits per second switch, which flattens the network to two tiers. Resulting in lower latency and much less power. And when you scale to clusters beyond single data center footprint, you now need to scale computing across data centers. Over the past two years, we have deployed our Jericho three Ethernet router with hyperscale customers to just do this. And today, we have launched our next generation Jericho four Ethernet fabric router with 51.2 terabits per second deep buffering intelligent congestion control, to handle clusters beyond 200,000 compute nodes crossing multiple data centers. We know the biggest challenge to deploying larger clusters of compute for generative AI will be in networking. And ... [transcript truncated at 5,000 chars — full text available via API]

Ji Yoo (Head of Investor Relations): Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the second quarter of fiscal year 2025. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website. This conference call is being webcast live, and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2025 results, guidance for our third quarter of fiscal year 2025 as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I will now turn the call over to Hock. Hock E. Tan (President and CEO): Thank you, Ji, and thank you, everyone, for joining us today. In our fiscal Q2 2025, total revenue was a record $15 billion, up 20% year-on-year. This 20% year-on-year growth was all organic as Q2 last year was the first full quarter with VMware. Now revenue was driven by continued strength in AI semiconductors and the momentum we have achieved in VMware. Now reflecting excellent operating leverage, Q2 consolidated adjusted EBITDA was $10 billion, up 35% year-on-year. Now let me provide more color. Q2 semiconductor revenue was $8.4 billion, with growth accelerating to 17% year-on-year, up from 11% in Q1. And of course, driving this growth was AI semiconductor revenue of over $4.4 billion, which is up 46% year-on-year and continues the trajectory of 9 consecutive quarters of strong growth. Within this, custom AI accelerators grew double digits year-on-year, while AI networking grew over 170% year-on-year. AI networking, which is based on Ethernet was robust and represented 40% of our AI revenue. As a standard-based open protocol, Ethernet enables one single fabric for both scale out and scale up and remains the preferred choice by our hyperscale customers. Our networking portfolio of Tomahawk switches, Jericho routers and NICs is what's driving our success within AI clusters in hyperscalers. And the momentum continues with our breakthrough Tomahawk 6 switch just announced this week. This represents the next-generation 102.4 terabits per second switch capacity. Tomahawk 6 enables clusters of more than 100,000 AI accelerators to be deployed in just 2 tiers instead of 3. This flattening of the AI cluster is huge because it enables much better performance in training next-generation frontier models through a lower latency, higher bandwidth and lower power. Turning to XPUs or custom accelerators. We continue to make excellent progress on the multiyear journey of enabling our 3 customers and 4 prospects to deploy custom AI accelerators. As we had articulated over 6 months ago, we eventually expect at least 3 customers to each deploy 1 million AI accelerated clusters in 2027, largely for training their frontier models. And we forecast and continue to do so a significant percentage of these deployments to be custom XPUs. These partners are still unwavering in their plan to invest despite the certain economic environment. In fact, what we've seen recently is that they are doubling down on inference in order to monetize their platforms. And reflecting this, we may actually see an acceleration of XPU demand into the back half of 2026 to meet urgent demand for inference on top of the demand we have indicated from training. And accordingly, we do anticipate now our fiscal 2025 growth rate of AI semiconductor revenue to sustain into fiscal 2026. Turning to our Q3 outlook. As we continue our current trajectory of growth, we forecast AI semiconductor revenue to be $5.1 billion, up 60% year-on-year, which would be the 10th consecutive quarter of growth. Now turning to non-AI semiconductors in Q2. Revenue of $4 billion was down 5% year-on-year. Non-AI semiconductor revenue is close to the bottom, has been relatively slow to recover, but they had bright spots. In Q2, broadband, enterprise networking and server storage revenues were up sequentially. However, industrial was down and as expected, wireless was also down due to seasonality. In Q3, we expect enterprise networking ... [transcript truncated at 5,000 chars — full text available via API]

Gu (Head of Investor Relations): Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO, Kirsten Spears, Chief Financial Officer, and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the first quarter of fiscal year 2025. If you did not receive a copy, you may obtain the information from the investors section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our first quarter fiscal year 2025 results, guidance for our second quarter of fiscal year 2025, as well as commentary regarding the business environment. We will take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to US GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results. I'll now turn the call over to Hock. Hock Tan (President and CEO): Thank you, Gu. And thank you everyone for joining today. In our fiscal Q1 2025, total revenue was a record $14.9 billion, up 25% year on year. And consolidated adjusted EBITDA was a record again, $10.1 billion, up 41% year on year. So let me first provide color on our semiconductor business. Q1 semiconductor revenue was $8.2 billion, 11% year on year. Growth was driven by AI, as AI revenue of $4.1 billion was up 77% year on year. We repeat our guidance for AI revenue of $3.8 billion due to stronger shipments of networking solutions to hyperscalers on AI. Our hyperscale partners continue to invest aggressively in the next generation Frontier models, which do require high-performance accelerators as well as AI data centers with larger clusters. Consistent with this, we are stepping up our R&D investment on two fronts. One, we're pushing the envelope of technology in creating the next generation of accelerators. We're taping out the industry's first two-nanometer AI XPU packaging 3.5D, as we drive towards a 10,000 teraflops XPU. Secondly, we have a view towards scaling clusters of 500,000 accelerators for hyperscale customers. We have doubled the radix capacity of this existing Tomahawk 5. Beyond this, to enable AI clusters to scale up on Ethernet towards one million XPUs. We have taped out our next-generation 100 terabit Tomahawk 6 switch running 200G SerDes and 1.6 terabit bandwidth. We will be delivering samples to customers within the next few months. These R&D investments are very aligned with the roadmap of our three hyperscale customers as they each race towards one million XPU clusters by the end of 2027. And, accordingly, we do reaffirm what we said last quarter, that we expect these three hyperscale customers will generate a serviceable addressable market or SAM in the range of $60 to $90 billion in fiscal 2027. Beyond these three customers, we had also mentioned previously that we are deeply engaged with two other hyperscalers in enabling them to create their own customized AI accelerator. We are on track to tape out their XPUs this year. In the process of working with the hyperscalers, it has become clear that while they are excellent in software, Broadcom is the best in hardware. Working together is what optimizes large language models. It is therefore no surprise to us since our last earnings call, the two additional hyperscalers have selected Broadcom to develop custom accelerators to train their next-generation Frontier models. So even as we have three hyperscale customers, we are shipping XPUs in volume today. There are now four more who are deeply engaged with us to create their own accelerators. And to be clear, of course, these four are not included in our estimated SAM of $60 billion to $90 billion in 2027. So we do see an exciting trend here. New Frontier models and techniques put unexpected pressures on AI systems. It's difficult to serve all classes of models with a single system design point. Therefore, it is hard to imagine that a general-purpose accelerator can be configured and optimized across multiple Frontier models. And as I mentioned before, the trend towards XPUs is a multiyear journey. So coming back to 2025, we see a steady ramp in the deployment of all our XPUs and networking products. So Q1 AI revenue was $4.1 billion, and we expect Q2 AI revenue to grow to $4.4 billion, which is up 44% year on year. Turning to no ... [transcript truncated at 5,000 chars — full text available via API]