Broadcom Inc (AVGO)

“We will now be taping out our next generation 200-terabit switch this quarter.”

“expect the non GAAP diluted share count to be approximately In Q3, 4.94 billion shares, excluding the impact of potential share repurchase.”

“Regardless of the impact to gross margin, we expect Q3 operating margin to be 67% which is flat quarter on quarter, demonstrating our strong operating leverage.”

“As the proportion of AI revenue significantly grows in Q3, we expect Q3 consolidated gross margin to be down to approximately 74%.”

“We expect Q3 infrastructure software revenue of approximately $8.9 billion, up 31% year on year.”

“Within this, we expect Q3 AI semiconductor revenue of $16 billion, up over 200% year on year.”

“We forecast semiconductor revenue of approximately $20.5 billion, up 124% year on year.”

“We expect operating margin to be stable at approximately 67% of revenue and adjusted EBITDA to be at approximately 68% of revenue.”

“So to sum it up, for Q3 2026, we expect our consolidated revenue to grow to $29.4 billion, up 84% year on year.”

“For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year on year.”

“In summary, we expect Q3 semiconductor revenue to be $20.5 billion, up 124% year on year.”

“Consistent with this trend in Q3 we forecast non AI semiconductor revenue to be approximately $4.5 billion, up 12% from a year ago.”

“Consistent with this trend in Q3, we expect AI semiconductor revenue to accelerate to $16 billion, up over 200% year on year.”

“Our revenue, our content, per gigawatt will increase. Put it simply.”

“Our visibility runs all the way to 2028 right now. Just 3 months ago, I can tell you visibility ran pretty much to 2027. Today, it runs to 2028.”

“For 2027, we indicated about 10 gigawatts. Shipment in 2027. that is still very much intact. They will be shipping 10. We are planning to ship 10 gigawatts in 2027 And that nothing has changed.”

“I think you will easily see that 2027 will exceed, very easily, $100 billion in 2027.”

“So basically say, we continue to be in excess of 100 billion in 2027.”

“Initial order for 1 gigawatt, which includes XPUs and our networking has been received and will start delivery in the second half of 2027.”

“We have a contractual commitment to deploy 1.3 gigawatts in 2027 as part of the larger 10 gigawatts by 2029 agreement we announced last year.”

“Now we expect this momentum to continue into fiscal year 27. And reiterate our AI semiconductor revenue guidance to be in excess of $100 billion.”

“Long term, given the kind of products we do in infrastructure, software, very, very close to literally the hardware, the tech, as basically the hypervisor which is where our products are, We do not expect to see any impact on software products.”

“Well, we are we are not seeing it. If anything else, as I reported, the high volume of core count of CPUs selling together with GPUs it is driving some accelerated growth of our VMware business. And as you can see in Q3, we are seeing an accelerated growth and we expect that to continue I guess, for the next multiple quarters as this demand picks up.”

“But I see that as probably as high as that percentage of total AI revenue would go. Not the first time I indicated that. The more, I expect the percentage as a share of total AI revenue for networking would be closer to around 30%.”

“So 2028, we expect a lot more gigawatts.”

“Customers have been coming to us incrementally over the last few months. We expect that to continue.”

“We expect, in fact, 28 to be a substantial growth from what we are forecasting in 2027.”

“We expect the non GAAP tax rate for Q3 and fiscal year 26 to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 25.”

“For our other 2 customers, we expect shipments to begin late 2026 and accelerate into 2027.”

“Under this agreement, we expect to deploy 3 gigawatts through the end of 2028.”

“We expect AI Semiconductor revenue growth to continue in fiscal 28 based on the following initiatives we have with our 6 core customers.”

“For the full year 2026, we expect to achieve AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 25.”

“In the second half of 2026, We expect AI semiconductor revenue to double from the first half we shipped from this year.”

“This momentum continues in Q2. The ramp of custom AI accelerators across all our 5 customers is progressing very well.”

“We expect the non-GAAP tax rate for Q2 in fiscal year 2026 to be approximately 16.5% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year '25.”

“In Q2, we expect the non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.”

“So in summary, let me put it all together for Q2 2026, we expect consolidated revenue growth to accelerate to 47% year-on-year and reach approximately $22 billion, and we expect adjusted EBITDA to be approximately 68% of revenue.”

“In Q2, we forecast non-AI semiconductor revenue to be approximately $4.1 billion, up 4% from a year ago.”

“Now we expect this momentum to accelerate as our custom AI XPUs hit their next phase of deployment among our 5 customers.”

“Yes.”

“I think on further study relative to even comments that I did make last quarter, the impact relative to our overall mix is actually not going to be substantial at all. So I wouldn't worry about it.”

“But at some point, I would think these things will settle down, though we're not slowing down the pace because, as I said, next year in '27, we'll launch next-generation Tomahawk 7, 2x the performance and we'll probably be by far the first out there, and that will continue to sustain that momentum.”

“Now to clarify your first part, Blayne, when I say we forecast, we have a line of sight that our revenue in '27 will be significantly in excess of $100 billion.”

“We have also secured the supply chain required to achieve this.”

“Today, in fact, we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027.”

“This lead will extend in '27 with our next-generation Tomahawk 7 featuring double performance.”

“And in fact, for the next-generation XPUs, we will scale to multiple gigawatts in '27 and beyond.”

“For Anthropic, we are off to a very good start in 2026 for 1 gigawatt of TPU compute.”

“For Google, we continue our trajectory of growth in '26 with strong demand for the seventh-generation Ironwood TPU.”

“And if you look at it by gigawatt in '27, we are seeing it getting close to 10 gigawatts.”

“I think we're going to see demand keeps picking up as we have heard announcements in the past 6 months.”

“As we next step up to 400G SerDes in 2028, our XPU customers will likely continue to stay on direct attached copper.”

“We expect OpenAI deploying in volume their first-generation XPU in 2027 at over 1 gigawatt of compute capacity.”

“Rounding off for customers 4 and 5, we see strong shipments this year and which we expect to more than double in 2027.”

“And for '27, this demand is expected to surge in excess of 3 gigawatts of compute.”

“In 2027 and beyond, we expect to see even stronger demand from next generations of TPU.”

“We do not see it getting any worse. We do not see it recovering very quickly.”

“So I guess given a one a couple more quarters, but we do not see any further deterioration in demand.”

“Well, on the non-AI semiconductor, we see broadband literally recovering very well. And we do not see the others No. We see stability. We do not see a sharp recovery that is sustainable yet.”

“For your modeling purposes, we expect Q1 consolidated gross margin to be down approximately 100 basis points sequentially, primarily reflecting a higher mix of AI revenue.”

“In Q1, we expect the non-GAAP diluted share count to be 4.97 billion shares excluding the potential impact of any share repurchases.”

“So take it that we expect revenue a minimum revenue, one way to look at it, of $73 billion over the next six quarters. But we do expect much more as more orders come in.”

“And obviously, this is as of now. I mean, we fully expect more bookings to come in over that period of time.”

“As far as the OpenAI view that you have, I we appreciate the fact that it is a multiyear journey. That will run through '29 as our press release with OpenAI showed. 10 gigawatts between '26 to more more like '27, 28. 29.”

“You know, our backlog is very dynamic these days. As I said. And it is continuing to ramp up.”

“We'll be passing through more costs within the rack. And so those gross margins will be lower. However, overall, the way Hock said it, gross margin dollars will go up. Margins will go down.”

“And the second half of the year when we do start shipping more systems, the situation is straightforward. We'll be passing through more components that are not ours.”

“So we expect operating leverage to benefit us at the operating margin level even as gross margin will start to deteriorate.”

“But we expect the rate of growth to offer as we do more and more AI revenue to be so so much that we get the operating leverage on our operating spending that operating margin won't deliver dollars that are still a high level of growth from what it has been.”

“This implies our fiscal 2026 annual common stock dividend to be a record $2.60 per share, an increase of 10% year on year.”

“We intend to maintain this target quarterly dividend throughout fiscal 2026, subject to quarterly board approval.”

“Infrastructure software revenue will continue to be driven by VMware growth at low double digits.”

“We still expect, however, that for fiscal 2026, Infrastructure Software revenue to grow low double-digit percentage.”

“We expect this $73 billion in AI backlog to be delivered over the next eighteen months.”

“And we see the spending momentum by our customers for AI continuing to accelerate in 2026.”

“And it's hard for me to pinpoint what 2026 is going to look like precisely. I rather not give you guys any guidance, and that's why we don't give you guidance. But we do give it for Q1. Give it time or give it till Q2, and you're right. It's saying that to us, is it an accelerating trend? And my answer is it's likely to be an accelerating trend. As we progress through 2026.”

“We expect the non GAAP diluted share count to be In Q4, approximately 4.97 billion shares, excluding the potential impact of any share repurchases.”

“We expect the non GAAP tax rate for Q4 and fiscal year 2025 to remain at 14%.”

“Broadband, server storage and wireless are expected to improve. While enterprise networking remains down quarter on quarter.”

“For Q4, 2025, we forecast AI semiconductor revenue to be approximately $6.2 billion, up 66% year on year.”

“So I expect actually networking percentage of the pool to be a declining percentage. Going into twenty six.”

“But you know what? We're not supposed to be giving you a forecast for '26, but best way to describe it, it will be fairly material improvement.”

“We are expecting and seeing 2026 to accelerate more than the growth rate we see in '25.”

“But to a large extent, it's the fourth quarter customer that we now add on to our roster. Which we will ship pretty strongly in 2026, I should say.”

“The board and I have agreed that I will continue as the CEO of Broadcom through 2030 at least.”

“We now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter.”

“It's very much along the trajectory we expect it to be. And there's no lumpiness. There's no softening. It's pretty much what we expect the trajectory to go so far and into next quarter as well and probably beyond.”

“scale up is very rapidly converting to Ethernet now, very much so. For our fairly narrow band of hyperscale customers, scale up is very much Ethernet.”

“our use of cash outside of dividends would be, at this stage, used towards reducing our debt.”

“the first choice typically of the other part of the free cash flow is to bring down our debt to a more -- to a level that we feel closer to no more than 2 ratio of debt to EBITDA.”

“We expect the non-GAAP tax rate for Q3 and fiscal year 2025 to remain at 14%.”

“As a reminder, consolidated gross margins through the year will be impacted by the revenue mix of infrastructure software and semiconductors.”

“In Q3, we expect the non-GAAP diluted share count to be approximately 4.97 billion shares, excluding the potential impact of any share repurchases.”

“I've always said and I expect that to be the case going forward in '26 as we grow that networking should be a ratio to XPU should be closer in the range of less than 30%, not the 40%.”

“we do anticipate now our fiscal 2025 growth rate of AI semiconductor revenue to sustain into fiscal 2026.”

“we eventually expect at least 3 customers to each deploy 1 million AI accelerated clusters in 2027, largely for training their frontier models.”

“So based on that, the renewals, we are like 2/3 of the way, almost to the halfway -- more than halfway through the renewals. So we probably have at least another year plus, maybe 1.5 years to go.”

“We are on track to tape out their XPUs this year.”

“M&A, no. I'm too busy we're too busy doing AI and VMware at this point. We're not thinking of it. At this point.”

“On the networking side, as indicated, Q1 showed a bit of a surge. But I don't expect that to be that mix of sixty-forty-sixty is compute and forty percent networking to be something that is normal? I think the norm is closer to seventy, thirty, maybe.”

“In Q2, we expect the non-GAAP diluted share count to be approximately 4.95 billion shares.”

“So reflecting the foregoing puts and takes, we expect non-AI semiconductor revenue in Q2 to be flattish sequentially even though we are seeing bookings continue to grow year on year.”

“In Q2, wireless is expected to be the same, flat again year on year.”

“Meanwhile, enterprise networking continues to remain flattish in the first half of fiscal 2025 as customers continue to work through channel inventory.”

“Server storage was down single digits sequentially in Q1 but is expected to be up high single digits sequentially in Q2.”

“Broadband, which bottomed in Q4 2024, showed a double-digit sequential recovery in Q1 and is expected to be up similarly in Q2 as service providers and telcos step up spending.”

“We will be delivering samples to customers within the next few months.”

“We repeat our guidance for AI revenue of $3.8 billion due to stronger shipments of networking solutions to hyperscalers on AI.”

“We do reaffirm what we said last quarter, that we expect these three hyperscale customers will generate a serviceable addressable market or SAM in the range of $60 to $90 billion in fiscal 2027.”

“There's no reason why these four guys would not create a demand in the range of what we're seeing with the first three guys. But probably later.”

“No, it doesn't. Not Q2. No. I don't -- it won't have a material impact on the rest of the fiscal '25.”

“This implies that our fiscal 2025 annual common stock dividend to be a record $2.36 per share on a split-adjusted basis, an increase of 12% year-on-year.”

“We are on track for volume shipment at our hyperscale customers in the second half of fiscal 2025.”

“We want to focus on reducing interest expense. So we'll go after those term loans. So yes, the focus will be on paying down debt.”

“So the likely use of that 50% cash is, as Kirsten indicated in her prepared remarks, pay down debt. We do intend to use part of that 50% free cash flow that's not used for dividends to go delever ourselves, given the size of the debt we are taking on -- or we have taken on since we acquired VMware.”

“We expect non-AI semiconductor revenue to be down about mid-teens percent year-on-year.”

“And in Q4, we expect server storage revenue to continue to grow.”

“In Q1, We expect the momentum in AI connectivity to be as strong as more hyperscalers deploy Jericho3-AI in their fabrics.”

“For VMware, ABV is expected to exceed $3 billion compared to $2.7 billion in the preceding quarter.”

“But see, the game here is the revenue will leverage so much on the spending we have to do to generate it that the operating margin will improve from where we are today.”

“So the reality going forward for this company is that the AI semiconductor business will rapidly outgrow the non-AI semiconductor business.”

“We are very well positioned to achieve a leading market share in this opportunity and expect this will drive a strong ramp from our 2024 AI revenue base of $12.2 billion.”

“We are well on the path to delivering incremental adjusted EBITDA at a level that significantly exceeds the $8.5 billion we communicated when we announced the deal. We are planning to achieve this much earlier than our initial target of three years.”

“In 2027, we believe each of them plans to deploy 1 million XPU clusters across a single fabric.”

“And we suspect a lot of that will continue in the first half of next fiscal year before more XPUs, as I indicated, more of the new generation of 3-nanometer XPUs will start ramping very much in the back half of '25.”

“We're pretty deeply engaged with tape-out chips. And -- but they've got to get their software ready, they got to get it tested and they got to get going on it. So now I'm not sure – but definitely over the next three years.”

“We have line of sight to develop these prospects into revenue generating customers before 2027 and could therefore expand the SAM significantly.”

“We can meet those upsides.”

“For Q4, we are rounding up the quarterly cash dividend to $0.53 per share.”

“We are well on the path to achieving or even exceeding this EBITDA goal in the next fiscal '25.”

“We continue to see that probably going forward over the next 12 months, especially related to XPUs getting deployed and getting infrastructure available and rushing to deploy them.”

“And I expect that to happen a lot more in 2025.”

“We continue to see orders. We continue to see upside.”

“And our gross margin will be around 90% at least.”

“In Q4, we’ll continue the trajectory of revenue continuing to grow and expenses starting -- still dropping even as it starts to stabilize but continue to reduce.”

“And we'll see Q4 continuing that recovery and obviously, in our view, into '25 in terms of the cycle.”

“So in terms of directional trend, other than the indication I’m giving you – than the guidance I’m giving you in Q4 ‘24, directionally, we continue to see accelerated bookings and by extension, accelerated growth.”

“And we see this trend continuing in Q4 very much so and also very likely through into '25.”

“And we kind of expect Q4 to run the similar trend.”

“For modeling purposes, we expect consolidated gross margins to be down approximately 100 basis points sequentially on the higher revenue mix of semiconductors and product mix within semiconductors.”

“In Q4, we expect the non-GAAP diluted share count to be approximately 4.91 billion shares.”

“We expect to repay approximately $1.9 billion of fixed rate senior notes due in Q4.”

“In aggregate, we have reached bottom in our non-AI markets and we're expecting a recovery in Q4.”

“We believe we are approaching bottom in Q3 as Q4 resales are expected to recover sequentially.”

“And in Q4, reflecting the launch of next-generation devices and our North American customers, we expect wireless revenue to actually grow over 20% sequentially even as it will be relatively flat year-on-year.”

“In Q4, we expect server storage revenue to grow mid to high-single digit percent sequentially, even as revenue is expected to be down high-single digit percent year-on-year.”

“Well, I didn't give a specific time frame, did I? But it's on track as we see this process growing towards a $4 billion quarter.”

“We see it behaving. I didn't particularly call it out, obviously because more than anything else, I kind of link it very much to server storage, non-AI that is. And we call server storage as at a bottom Q2, and we call it to recover modestly second half of the year. We see the same thing in networking”

“During the quarter, we repaid $2 billion of our floating rate debt, and we intend to maintain this quarterly repayment of debt throughout fiscal 2024.”

“Non-AI semiconductor revenue has bottomed in Q2 and is likely to recover modestly for the second half of fiscal '24.”

“And for fiscal '24, we now expect industrial resale to be down double-digit percentage year-on-year compared to our prior guidance for high single-digit decline.”

“Accordingly, we are revising our outlook for fiscal '24 broadband revenue to be down high 30s year-on-year from our prior guidance for a decline of just over 30% year-on-year.”

“We expect Broadcom to bottom in the second half of the year with a recovery in 2025.”

“And accordingly, we forecast fiscal '24 server storage revenue to decline around the 20% range year-on-year.”

“And based on updated demand forecast and bookings, we expect a modest recovery in the second half of the year.”

“And in fiscal '24, helped by content increases, we reiterate our previous guidance for wireless revenue to be essentially flat year-on-year.”

“We expect the strength in AI to continue, and because of that, we now expect networking revenue to grow 40% year-on-year compared to our prior guidance of over 35% growth.”

“We therefore expect operating margins for VMware to begin to converge towards that of classic Broadcom software by fiscal 2025.”

“VMware revenue in Q1 was $2.1 billion, grew to $2.7 billion in Q2, and will accelerate towards a $4 billion per quarter run rate.”

“We used to be 80% accelerators, 20% networking. It's now running closer to two-thirds accelerators, one-thirds networking and we'll probably head towards 60%-40% by the close of the year.”

“Revenue from VMware will grow double-digit percentage sequentially, quarter-over-quarter, through the rest of the fiscal year.”

“But I tell you what, we have 52-week lead time, as you know. We are very disciplined in sticking to it. And based on that, we are seeing bookings lately, significantly up from bookings a year ago.”

“And we reiterate our full year adjusted EBITDA guidance of 60%.”

“So for fiscal 2024 in summary, we reiterate our guidance for consolidated revenue to be $50 billion, which represents 40% year-on-year growth.”

“Turning to fiscal '24. We reiterate our guidance for Semiconductor Solutions revenue to be up mid- to high single-digit percentage year-on-year.”

“We are seeing weaker demand in the first half, but expect recovery in the second half.”

“And in fiscal 2024, helped by content increases, we reiterate our previous guidance for wireless revenue to be flat year-on-year.”

“And reflecting all these factors for the full year, we reiterate our fiscal 2024 guidance for software revenue of $20 billion.”

“We expect continued strong bookings at VMware will accelerate revenue growth through the rest of fiscal 2024.”

“But the difference between that and, say, CA, under acquisition we did is we're growing this business very fast. And you don't have to increase your spend growing this business. So we have operating leverage through revenue growth over the next three years.”

“But we see a trajectory of accelerated growth even in 2024 -- through 2024.”

“So we’re seeing no slowdown, in fact, in the update on building out this AI networks. If anything else on average, we are seeing a doubling on size of those networks across the board.”

“Always with acquisitions in mind, we’re continuing our share repurchase program that we promised. So that’s -- we’re definitely buying back shares.”

“And as I indicated in my remarks, we see that revenue as part of networking revenue, $4 billion and networking -- AI networks and going -- doubling almost during 2024.”

“During fiscal ‘24, we expect to incur about $1 billion of spend related to transitioning VMware into the new Broadcom model.”

“We are also converting an installed base of licenses that is over 60% perpetual today to one that will be mostly subscription by the end of fiscal 2024.”

“This implies our fiscal 2024 annual common stock dividend to be a record $21 per share.”

“In fiscal year 2024, including the incremental shares from the acquisition of VMware and excluding the potential impact of any share repurchases, we expect the non-GAAP diluted share count to be approximately 494 million.”

“We expect revenue from generative AI to represent more than 25% of the semiconductor revenue, consistent with prior guidance, which more than offset the lack of growth from non-AI semiconductor revenue.”

“In fiscal ‘24, we expect industrial resales to be down low single digits year-on-year.”

“And accordingly, in fiscal ‘24, we expect wireless revenue to again remain stable year-on-year.”

“So for 2024, based on 11 months of contribution from VMware, we expect VMware to contribute $12 billion in revenue.”

“Revenue in fiscal 2023 was $7.6 billion, up 3% year-on-year and our expectation for fiscal ‘24 is for this revenue to be $8 billion, which is 4% year-on-year.”

“We expect the integration to take about a year and will require close to $1 billion in transition spending, which will largely be done as we exit fiscal ‘24.”

“Offsetting these, our new strategy for VMware will accelerate revenue growth over the next three years.”

“At steady state, you’re right. At steady state, we’ll get to pretty close to 65% on VMware.”

“And to answer your question, you’re right, we are accelerating from $12 billion, and we’re probably seeing a double-digit growth for the next three years, just by sheer math of selling that higher value virtualization stack versus the very loose component sales in the past, particularly on compute only.”

“And so to answer your question, we have always indicated previously that for fiscal '24, which is just, which is a forecast, we believe it will be over 25% of our revenue -- of our semiconductor revenue over 25% of our semiconductor revenue.”

“We continue to work constructively with regulators in a few other jurisdiction and are in the advanced stages of the process towards obtaining the remaining required regulatory approvals, which we believe will be received before October 30th. We continue to expect to close on October 30th, 2023.”

“Over the past quarter, we have already received substantial orders for our next-generation Tomahawk 5 switch and Jericho3-AI routers and plan to begin shipping these products over the next six months to several hyperscale customers.”

“As an example, our switch, our next-generation Tomohawk5 switch, which will start shipping middle of next year, what we call the program we call the Bailly, a fully integrated switch silicon photonic switch.”

“We have seen over the years on a long-term basis, an expansion of gross margin on a consolidated basis for semiconductors that ranges from 50 to maybe 150 basis points on an annual basis.”

“So we see it accelerating through end of '22, now accelerating and continued to accelerate through end of '23 that we just indicated to you. And for fiscal '24, we expect somewhat a similar accelerating trend.”

“In Q4, we expect gross margins to be down 80 basis points sequentially on product mix.”

“Excluding the impact of any share repurchases executed prior to the suspension, in Q4, we expect a non-GAAP diluted share count to be $435 million.”

“We expect the election period to end shortly before the anticipated closing of the transaction on October 30th, 2023.”

“Sequentially, if we exclude generated AI, our semiconductor revenue will be flat.”

“And this has been driven by the strength obviously in generative AI where we forecast to grow about 50% sequentially and almost two times year-on-year.”

“And we see it as a measured ramp over -- that has started in fiscal '23 and will continue its pace through to '24.”

“We still keep to that forecast we've given you in fiscal '23.”

“We guided or we indicated that for fiscal '23 that the revenue we are looking in this space is $3.8 billion.”

“We still expect the transaction will close in Broadcom's fiscal 2023.”

“But given another -- my view next year, the cycle could turn around and Brocade would go on. And then instead of a 3% year-on-year growth in this whole segment, we could end up with high single digits year-on-year growth rate because the core software revenue, as I've always indicated to you guys, you want to plan long term on mid-single-digit year-on-year growth rate.”

“We are on track to exceed $3 billion in revenue in our fiscal 2023.”

“But we believe we can do Tomahawk 5 at the same power, close to the same power if not lower than Tomahawk 4.”

“We intend to launch Tomahawk 5 early 2024 as we indicated previously and that’s the conventional silicon-based with pluggable optics switch top of the rack switch Tomahawk 5 51.2 terabit per second.”

“Having said that, we continue to expect the transaction to close within our fiscal 2023.”

“As we stated on our last earnings call, we continue to anticipate that the time line for the review process will be extended in other key regions, especially given the size of this transaction.”

“With the expected exponential demand from our hyperscale customers, we forecast that this could grow to well over $800 million in 2023.”

“Having said that, we’re still confident that this transaction will close and be completed in our fiscal 2023.”

“This implies our fiscal 2023 annual common stock dividend to be a record $18.40 per share.”

“We intend to maintain this target quarterly dividend throughout fiscal ‘23, subject to quarterly Board approval.”

“We ended the year with $13 billion of authorized share repurchase programs remaining and expect to resume our repurchase of common stock as soon as we can under SEC rules.”

“We anticipate that time line for the review process would be more extended in other key regions, especially given the size of this transaction.”

“What we do see is over the next several months, we see those orders still in place.”

“For '23, sure, it will hold up better.”

“Well, to answer your first question, yes, we're on track for this year to hit that $2 billion.”

“But as far as what we reported in Q3 and expect to see in Q4, we believe to be true -- we believe and we're pretty clear about that to be true end demand and consumption by our customers.”

“We maintain our commitment to return excess cash to shareholders, including buybacks, as soon as we can under SEC rules.”

“Now, putting this in perspective, and if we look at it on a sequential basis, Q3 grew 6% as did Q2, and Q4 will grow another 6%, largely driven by the seasonality of wireless.”

“As far as the regulator process through VMware, right now, I would say, when you think of it, and we're thinking it across several -- a few -- a couple of jurisdictions. And we're moving -- it's making good progress. And just to reiterate, and we fully expect to close on this within fiscal '23.”

“And empirically -- don't ask me for any mathematical formula behind -- physics behind it. But empirically, given our portfolio of about 16 semiconductor franchises, we have averaged close to 50 to 100 basis points expansion year-after-year. And that's pretty good, and we see that trend continuing.”

“In Q4, we expect the non-GAAP diluted share count to be 435 million, which excludes the potential impact of any share repurchases completed in the fourth quarter.”

“We continue to expect the transaction to be completed in Broadcom's fiscal year 2023.”

“we expect first deployments to occur in the second half 2023.”

“Networking remains strong, given these drivers. And in Q4, we expect this segment to be up 30% year-over-year.”

“Importantly, we expect these trends to continue.”

“Looking at Q4, we expect enterprise to continue to grow double-digit percent year-over-year.”

“Cloud and service provider growth remained strong, and in Q4 is actually expected to accelerate year-on-year, driven by data center build-out and infrastructure upgrades.”

“This will be accretive out of the gate, and it will get very accretive as we get through our integration process.”

“Following the acquisition of VMware, we remain committed to our dividend policy of returning 50% of prior year's free cash flows as dividends.”

“In terms of the long tail of 300,000 customers, we do not -- as we perhaps had looked at before, we are looking at it very, very positively, too, in the sense that we will make sure these are well supported. This continues to be a business base that will grow, but we will go through it and we will handle these guys through partners”

“As you look at the aggregate value here and then you look at the EBITDA expectations, we expect to drive double-digit cash-on-cash returns.”

“Between now and deal close, we expect to generate considerable free cash flow.”

“With the acquisition of VMware, we expect to enhance our already strong organic earnings and free cash flow growth.”

“We envision a long-term model for software, where we can grow our top line revenues at mid-single digits on a recurring basis, if not faster, while driving EBITDA margins in the mid-60s.”

“So in Q3, we expect these same drivers to continue with revenue to grow over 60% year-on-year.”

“The next 12 months is pretty good. We have visibility, and we kind of indicated that in our answers.”

“Yes. And by the way, it’s not just me having to come on new products. There’s a pool... That product life cycle is what enables us to develop these new products, and our margins will keep expanding.”

“But what you’re saying makes a lot of sense. And to answer your question directly, yes, we have line of sight through end of 2022, both, we believe, in demand and in supply.”

“We’ll probably use – we will likely use all of it up evenly over the next nine months of the remaining year.”

“At least the first part of 2023, yes.”

“We’re now booking, given our lead times I indicated, in 2023. And 2023, I think, will be – at least the first half of 2023 will still be pretty close to the same.”

“We think the trend demand increase is more like closer to 20% year-on-year than what perhaps in dollar terms you’re represented.”