Broadcom reported its fourth quarter earnings on November 11.
During the earnings call, Broadcom Chairman and CEO Hock Tan said:
“Our custom business has doubled year-over-year as we see our customers increase adoption of XPUs, as we call those custom accelerators, in their LLM training and monetization of platforms through inference APIs and applications.”
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The income of 18 billion dollarsup 28% year-on-year
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GAAP net income of 8.5 billion dollarsup 97% from last year
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Adjusted EBITDA of 12.2 billion dollars or 68% of revenue, up 34% from last year
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GAAP diluted EPS of $1.74up 93% from last year
Marvell Technology, Broadcom’s competitor in semiconductor design, recently announced that it will acquire Celestial AI. Celestial AI is a developer of Photonic Fabric technology, a platform for scaling optical interconnects.
Tan addressed the question of whether Broadcom has an answer to competitors’ silicon photonics.
“I could see a point in time in the future when silicon photonics counts as the only way to do this. We’re not there yet, but we have the technology and we’re continuing to develop the technology.”
Tan’s view is that the technology will be improved to the limit without photonics, and only once this has been done will photonics be used.
Following the earnings release, Bank of America analyst Vivek Arya and his team updated their views on Broadcom ( AVGO ) stock. The team raised its fiscal 2026-2027 estimates for Broadcom’s pro forma EPS by 8% each, despite a higher tax rate and mix-driven gross margin pressure to $10.33 and $14.40, respectively.
Analysts said Broadcom confirmed Anthropic as its fourth customer, with another $11 billion in orders for delivery in late 2026. The company also announced its fifth customer designing its own custom ASIC on a “multi-year journey,” with an initial order for $1 billion to ship in 2026.
Arya noted that Broadcom’s partnership with OpenAI to deploy 10 GW of custom computing capacity in the second half of 2026 to 2029 remains intact.
The team stated that Google may attract in-house design content over time, as well as MediaTek’s competition for TPUv8e (probably 10% to 20% of total v8 units), could reduce Broadcom’s addressable opportunity to Google/others.
In a research note shared with TheStreet, Arya reiterated a buy rating on shares of AVGO and raised their price target to $500 from $460, based on a 33 multiple of its 2027 P/E estimate.
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The risks of the semiconductor cycle
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High exposure to Apple and Google with potential design risks
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Competitive risks in networking, smartphones, storage and enterprise software
mARKETS -
Frequent acquirer of assets, which increases financial and integration risks
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High net debt of $60 billion
Broadcom and ING have expanded their partnership, and ING will adopt VMware Cloud Foundation 9.0 (VCF 9) as part of its private cloud strategy. ING will extend its existing VMware virtual environment with VCF 9, leveraging the platform’s full-stack capabilities.
“VMware Cloud Foundation 9 will provide us with the unified, enterprise-grade private cloud platform needed to achieve consistency across multiple regions, improve workload mobility, and confidently meet the complex cloud governance and compliance requirements that underpin our commitment to our customers,” said Daniele Tonella, ING Chief Technology Officer.
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Broadcom released Brocade X8 Directors and the 56-port Brocade G820 switch. According to the company, these are the industry’s first 128G Fiber Channel platforms designed for today’s mission-critical workloads and enterprise AI applications.
The Brocade Gen 8 portfolio includes quantum-resistant 256-bit encryption and other post-quantum encryption algorithms to protect sensitive data and infrastructure from future quantum computers.
The company announced plans to expand its strategic partnership with NEC Corporation. NEC will implement VMware Cloud Foundation (VCF) in its IT systems. This will enable NEC to provide a higher quality of service when delivering VCF-based solutions to customers.
Broadcom also promotes an open and extensible ecosystem for VCF, enabling customers to build, connect, secure and extend their private clouds.
“The momentum behind VMware Cloud Foundation 9.0 is undeniable. It’s a platform that redefines how organizations approach their private cloud journey, providing a consistent operating model that spans the data center to the edge,” said Paul Turner, chief product officer, who leads Broadcom’s VMware Cloud Foundation Division.
“By fostering an open VCF ecosystem, we’re empowering companies to build modern private clouds that align with their strategic needs, ensuring they can leverage the technologies they need for their unique environments.”
Related: Bank of America makes surprise call on Nvidia-backed stock
This story was originally published by TheStreet on December 12, 2025, where it first appeared in the Investing section. Add TheStreet as a favorite source by clicking here.