00:00Initial reaction, Gil?
00:01These are good numbers.
00:03So maybe not as much upside to this quarter as some investors may have expected.
00:09But I do think that the guidance for this, for the quarter we're in, the one they'll
00:13report in three months, is where investors wanted it.
00:17And that doesn't include the fact that we expect them to exceed that.
00:21So I would say that's good.
00:22Let's not forget this earnings season has been absolutely wild.
00:26Companies that have exceeded expectations, including NVIDIA, have not been rewarded for
00:31it.
00:31So I wouldn't necessarily put too much weight on the trading activity aftermarket.
00:37But from what you've just said, that is a good result that puts Broadcom on track to
00:42hitting or exceeding expectations for the year.
00:45And just to focus a little bit, though, on the after hours reaction, you can see we flipped
00:50into positive territory, now higher by about 1.4 percent.
00:54But you can see it's moving around a lot.
00:55That could be that sort of reversal there to the fact that Broadcom is sending a new
00:59share buyback program up to $10 billion.
01:03That is certainly a big ticket there.
01:05You can see, again, Broadcom shares now in the green.
01:08So we were talking a little bit about this focus, of course, on orders, the sustainability,
01:13the durability.
01:14But build on that a little bit more, Gil.
01:17You know, what you would like to hear when these executives get on the phone at about 5 p.m.?
01:22Yeah, so there's a few levels to this.
01:25One is Google and its TPUs, right?
01:27Google TPU, the biggest customer by far.
01:29That is a very mature, successful product.
01:32We've even started talking about Google selling that into the open marketplace, not just for
01:37internal consumption.
01:38So we want to get an update on that.
01:40Let's not forget the next generation of TPUs is split between Broadcom and others.
01:45So we want to hear that Broadcom gets the lion's share.
01:48Then you have the other mega caps, right?
01:51What is Microsoft Meta doing with their customerships?
01:55What's Amazon doing with Tranium?
01:57How is that going to continue to grow into next year?
02:00For all of those, we have decent visibility, again, because those customers have the cash
02:05flow and the wherewithal to continue to invest.
02:07Then you get into the next level where the expectations are really high and we still have
02:12to see what happens.
02:13That's open AI and Anthropic.
02:15How quickly would that demand translate to new activity for Broadcom?
02:20Let's not forget those two just raised capital.
02:22That's great news.
02:23They have tens of billions of dollars to spend.
02:26The flip side of that is they need to spend that on compute.
02:29They need to spend that first and foremost on Microsoft, Amazon, and Oracle and their data
02:34centers in order to provide us with the chat GPT, with those APIs.
02:39Will they have the capital left to buy those orders that they've committed to or that they
02:46have an arrangement with Broadcom to deliver over the next few years?
02:52That's the bigger question, Mark.
02:54I expect that to come up more as a topic.
02:56Do Anthropic and OpenAI have the capital to buy this year, next year, at the very ambitious
03:03rates that they've been discussing?
03:05All right, Gil.
03:06Got to leave it there.
03:07Great to break down these earnings with you.
03:08That is Gil Loria.
03:09He is head of technology research over at DA Davidson.
03:13You can see shares of Broadcom right now a little bit higher, Romain.
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