Broadcom (AVGO) Q3 2023 Earnings Call Transcript Summary
Broadcom (AVGO) recently held its Q3 2023 earnings call, presenting both positive and negative aspects that could impact the company's future stock price.
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Q3 2023 consolidated net revenue of $8.9 billion, up 5% year on year.
2. Semiconductor Solutions revenue increased 5% year on year to $6.9 billion.
3. Infrastructure Software grew 5% year on year to $1.9 billion.
4. Hyperscale continued to grow double digits year on year.
5. Generative AI investments driving strength in hyperscale spending.
6. Q3 networking revenue up 20% year on year.
7. Q4 networking revenue expected to accelerate in excess of 20% year on year.
8. Q4 wireless revenue expected to grow over 20% sequentially.
9. Q4 industrial resales expected to be up low single-digit percentage year on year.
10. Q4 Infrastructure Software segment revenue expected to be up mid-single digit year on year.
Bearish Points:
1. Enterprise and telco spending moderated.
2. Q3 industrial resales declined 3% year on year due to weak demand in China.
3. Q4 server storage connectivity revenue expected to be down mid-teens percent year on year.
4. Q4 broadband revenue expected to decline high single digits year on year.
5. Q4 gross margins expected to be down 80 basis points sequentially on product mix.
6. Supply constraints due to long lead times for AI products.
7. Potential inventory correction in non-AI networking business.
8. Slowdown in adoption rate.
9. Uncertainty in predicting upcycle.
10. Limited visibility on custom silicon business growth.
For more information about Broadcom (AVGO)'s earnings call, you can read the relevant news: [Broadcom (AVGO) Q3 2023 Earnings Call Transcript](https://www.fool.com/earnings/call-transcripts/2023/09/01/broadcom-avgo-q3-2023-earnings-call-transcript/)
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