Overview
- Broadcom reported Q1 AI revenue of $8.4 billion, raised its fiscal 2027 AI sales guidance to more than $100 billion, and authorized a $10 billion share buyback.
- The company began shipping an industry‑first 2nm custom compute SoC on its 3.5D XDSiP platform, delivering the chip to Fujitsu for its FUJITSU‑MONAKA processor.
- At Mobile World Congress, Broadcom introduced VMware Telco Cloud Platform 9, touting a potential 40% five‑year TCO reduction, ESX Live Patching for updates without downtime, and a unified GitOps automation framework.
- Analyst sentiment strengthened, with Jefferies reiterating a Buy rating and Wolfe Research upgrading to Outperform while projecting substantial custom AI unit shipments in coming years.
- Forbes highlighted valuation risks, noting Broadcom trades near 49x on trailing adjusted earnings (about 65x GAAP), with a price‑to‑sales ratio around 24 and price‑to‑free cash flow near 61.