Broadcom financial results tomorrow morning 🧐 In the “apple and orange comparison”, it was found that ASICs surpass GPUs
Broadcom's AI Edge: An “Apple vs. Orange Comparison” Shows ASICs Outperform GPUs, According to Analysts2024/12/12 Benzinga
Fourth quarter results are expected to be announced on December 12, and Broadcom Corp. (NASDAQ: AVGO) is expected to perform outstanding. Rosenblatt analyst Hans Mosesman predicts that this quarter will “rise moderately at once,” driven by the company's rapid increase in AI-related silicon-related earnings and a rise in VMware.
Broadcom's AI networking revenue is expected to reach $3.5 billion this quarter, up 10% from the previous quarter. “We believe revenue is being driven by the strength of AI-related silicon,” Mosesmann said.
Expected revenue for the fourth quarter is 14 billion dollars, reflecting a 51% increase over the same period last year, and is expected to solidify Broadcom's position as an AI giant.
Broadcom's AI networking revenue is expected to reach $3.5 billion this quarter, up 10% from the previous quarter. “We believe revenue is being driven by the strength of AI-related silicon,” Mosesmann said.
Expected revenue for the fourth quarter is 14 billion dollars, reflecting a 51% increase over the same period last year, and is expected to solidify Broadcom's position as an AI giant.
2025 outlook: AI will lead but non-AI play will recover
Looking ahead, Mosesman predicts that Broadcom will surpass the January quarter consensus. AI-related revenue is expected to surpass $12 billion in 2024, and the momentum is not limited to that.
He predicts that “revenue from non-AI semiconductors should continue to recover in fiscal year 25, but infrastructure software is likely to be driven by VMware's strengths.”
ASIC vs. GPU: A win for both
The competitive environment between Broadcom's custom ASICs and Nvidia Corp's (NASDAQ: NVDA) GPUs is often controversial, but Mosesman calls it an “comparison between Apple and Orange.” “Over the next few years, AI ASICs are expected to outgrow GPU computing,” he added, highlighting Broadcom's growth potential in AI acceleration, generation AI, and networking across cloud and edge.
Looking ahead, Mosesman predicts that Broadcom will surpass the January quarter consensus. AI-related revenue is expected to surpass $12 billion in 2024, and the momentum is not limited to that.
He predicts that “revenue from non-AI semiconductors should continue to recover in fiscal year 25, but infrastructure software is likely to be driven by VMware's strengths.”
ASIC vs. GPU: A win for both
The competitive environment between Broadcom's custom ASICs and Nvidia Corp's (NASDAQ: NVDA) GPUs is often controversial, but Mosesman calls it an “comparison between Apple and Orange.” “Over the next few years, AI ASICs are expected to outgrow GPU computing,” he added, highlighting Broadcom's growth potential in AI acceleration, generation AI, and networking across cloud and edge.
A strong setup for 2025
Mosesman once again expressed Broadcom's purchase rating by setting a price target of 240 dollars, backed by “a multiple of the price-earnings ratio in the early 30s in non-GAAP-based EPS in fiscal year 26.”
As Broadcom CEO Hok Tan emphasizes that AI computing will evolve based on “open” industry connectivity standards, the company appears to be in an advantageous position for long-term success.
Mosesman once again expressed Broadcom's purchase rating by setting a price target of 240 dollars, backed by “a multiple of the price-earnings ratio in the early 30s in non-GAAP-based EPS in fiscal year 26.”
As Broadcom CEO Hok Tan emphasizes that AI computing will evolve based on “open” industry connectivity standards, the company appears to be in an advantageous position for long-term success.
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