š AVGO: Broadcom Is Becoming More Than a Networking Play Broadcomās AI numbers are getting hard to ignore. AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4. But thereās another shift happening underneath those numbers. Semiconductor solutions now generated 70% of Broadcomās total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%. That means Broadcomās growth mix is changing quickly. The interesting question isnāt
$Broadcom(AVGO)$ AI numbers are getting hard to ignore.
AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4. ļæ¼
But thereās another shift happening underneath those numbers.
Semiconductor solutions now generated 70% of Broadcomās total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%. ļæ¼
That means Broadcomās growth mix is changing quickly.
The interesting question isnāt simply whether custom AI chips can compete with GPUs.
Itās whether Broadcom can build a durable business around customers designing increasingly specialised AI infrastructure.
And the cash flow is worth watching. Broadcom generated $13.7B of free cash flow in Q3, equal to 46% of revenue, while non-GAAP operating income rose 92% year over year. ļæ¼
So the ASIC story isnāt just about revenue growth anymore.
Itās about whether this new mix can keep producing cash at scale.
Thatās what Iād be watching over the next few quarters.
Broadcomās AI numbers are getting hard to ignore.
AI semiconductor revenue hit $16.7B in Q3, up 221% year over year and 54% from the previous quarter. Management expects that figure to reach $21.7B in Q4. ļæ¼
But thereās another shift happening underneath those numbers.
Semiconductor solutions now generated 70% of Broadcomās total Q3 revenue, compared with 57% a year earlier. Infrastructure software was still growing, but at a much slower 29%. ļæ¼
That means Broadcomās growth mix is changing quickly.
The interesting question isnāt simply whether custom AI chips can compete with GPUs.
Itās whether Broadcom can build a durable business around customers designing increasingly specialised AI infrastructure.
And the cash flow is worth watching. Broadcom generated $13.7B of free cash flow in Q3, equal to 46% of revenue, while non-GAAP operating income rose 92% year over year. ļæ¼
So the ASIC story isnāt just about revenue growth anymore.
Itās about whether this new mix can keep producing cash at scale.
Thatās what Iād be watching over the next few quarters.
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