Broadcom Inc.(AVGO.US) Q4 earnings call: AI total order volume exceeded $73 billion. More new orders are expected.

Broadcom Inc. (AVGO.US) held the financial report conference call for the fourth quarter of fiscal year 2025. The total revenue for the fourth quarter set a record at $18 billion, a 28% year-over-year increase, exceeding expectations. Adjusted EBITDA was $12.2 billion, a 34% year-over-year increase, accounting for 68% of the revenue. Semiconductor solutions business revenue was $11.1 billion, a 35% year-over-year increase; infrastructure software business revenue was $6.9 billion, a 19% year-over-year increase. For the first quarter of fiscal year 2026, the company expects combined revenue of approximately $19.1 billion, a 28% year-over-year increase. The expected adjusted EBITDA profit margin is around 67%. Key developments in orders include: In Q3 2025, a $10 billion order was received from Anthropic for the latest TPU "Ironwood." In this quarter, an additional $11 billion order was received from the same customer (Anthropic), to be delivered by the end of 2026. A $1 billion order was successfully received from the fifth XPU customer (to be delivered by the end of 2026). It is expected that customer spending in the AI field will continue to accelerate in fiscal year 2026. The revenue from AI semiconductors in the first quarter of fiscal year 2026 is expected to reach $8.2 billion, an approximately 100% year-over-year increase. Additionally, Broadcom Inc.'s stock price fell after trading hours due to a relatively conservative narrative from management during the discussion, including information about AI order prospects, new customer/order developments, etc. In summary, the market outlook for Broadcom Inc.'s AI business next year and beyond appears optimistic, primarily due to the company's partnership with Alphabet Inc. Class C Gemini and the advantages of the TPU "cost-effectiveness." However, the announcement of a 18-month order backlog of $73 billion has dampened market sentiment. Excluding orders from Anthropic and the fifth customer, it indicates that Alphabet Inc. Class C's own demand is essentially not growing, which has disappointed the market. While the $73 billion order backlog is seen as a minimum figure, the actual performance is expected to be better, and the company's stock price saw a 5% drop after trading hours. Although this has impacted market confidence in the short term, Broadcom Inc.'s management has historically been relatively cautious and may revise their AI outlook in the future. From a medium to long-term perspective, the "Alphabet Inc. Class C Gemini + Broadcom Inc." partnership still offers a significant cost advantage and is likely to continue putting pressure on NVIDIA Corporation. Q&A: Q: The backlog of $73 billion in AI business is to be delivered in the next 18 months,...