20240311-招银国际-Broadcom__AI_revenue_to_achieve_35__of_semi_revenue_or_US_10bn+_run_rate_in_FY24_5页_927kb

Broadcom 1Q24 Earnings Summary

Key Financial Performance

• Broadcom posted Q1 2024 revenue of $12.0 billion, representing 34% year-over-year growth and a 29% sequential increase, slightly beating the Bloomberg consensus of $11.8 billion.
• Gross Profit Margin (GPM) improved to 75.4%, up 110 basis points from the previous quarter, driven by VMware consolidation.

Full-Year 2024 Guidance

• Management guided FY24 revenue at approximately $50 billion, implying a 29% year-over-year growth rate, aligning with Bloomberg consensus.
• AI business revenue run rate for FY24 is expected to be around $10 billion, an upward revision from the prior $7.5 billion estimate.

AI Growth and Contribution

• AI revenue has surged, accounting for approximately 31% of semiconductor sales in Q1 2024 (up from 20% in the previous year), with AIM guiding for 35% contribution in FY24.
• Custom silicon will take longer to develop and currently represents a minority share in the revenue mix.

Traditional Segments and Challenges

• Continued weakness in traditional server storage and broadband business due to prolonged demand, with mid-20s decline projected for storage and 30% decline for broadband.
• However, company cites accelerating bookings, suggesting an inflection point in 2024H2.

Opportunities and Recommendations

• Strong growth potential in AI supply chain and custom silicon market, with VMware as a key revenue driver in the software segment.
• Maintain BUY rating on Innolight (300308 CH) and positive stance on companies such as Nvidia (NVDA US), AMD (AMD US), Broadcom (AVGO US), and others in the AI ecosystem.

Recent Data Highlights

• Provided financial figures for QoQ and YoY growth, segment revenue breakdown, and performance metrics for FY21-1Q24.
• Downloadable related reports available, covering topics like AI trends, optical transceivers, and semiconductor sector analysis.