Broadcom Inc. (AVGO.US): Highlights From Virtual NDR Call With Mgmt

We hosted a virtual NDR call with the CEO/CFO and came away feeling that the company established a strong upward bias to F2027/F2028 AI revenue guidance provided on its recent earnings call, and again reiterated that investor concerns on its flagship TPU program are misguided. Key takes are: 1) following the v8i ramp in 2027, engagement remains very strong for the next two generations of its flagship XPU program; 2) AVGO is now including significantly more SRAM and ARM CPU cores for orchestration/management (potentially sweeping in content currently standalone server CPU for rack head-nodes), making these increasingly complex XPU devices harder for any in-house design team to compete with; 3) regarding its initial frontier lab customer, AVGO stressed that it "sells chips, not financial products" and is not providing direct financing, providing residual-value guarantees only for select tranches;