Broadcom Inc


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SKU: AVGO Category:


Broadcom had another solid quarter and surpassed Wall Street expectations on the revenue front as well as the earnings front. Its core semiconductor solutions business continued to benefit from the global shortage with and its revenue grew 19% year-on-year to nearly $5 billion. This is expected to be a key driver in the coming quarters as well. The company’s  infrastructure software revenue increasing 10% year-on-year was also a big positive. The demand for Broadcom’s offerings continued to be strong from HyperCloud and Service provider customers in the third quarter. Additionally, their networking revenue grew by $1.8 billion, up 19% year-on-year compared to the low double-digit growth and represented 36% of the company’s semiconductor revenue. The only setback for the management in the semiconductor segment was in the form of the server storage connectivity business which was down 9% year-on-year according to their guidance, representing around 13% of semiconductor revenue. For the time being, it appears that the semiconductor shortage is here to stay and Broadcom is expected to continue having a strong run. We are optimistic about Broadcom’s future and give it a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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