KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway
Broadcom (AVGO) delivered strong Q3 earnings, but the real spotlight is a $10 billion AI chip order — reportedly from OpenAI — which sets up fiscal 2026 for accelerated growth.
Q3 Earnings Snapshot
Revenue: $15.95B (+22% YoY, +6% QoQ), slightly above guidance.
Gross Margin: 67.1% (+3.2 ppts YoY, -0.9 ppts QoQ).
Non-GAAP Net Income: $8.4B (+56% YoY, +8% QoQ), narrowly topping estimates.
Semiconductors: $9.2B revenue (+26% YoY), with AI chips contributing $5.2B (+63% YoY).
Software: $6.8B revenue (+17% YoY), with high margins (93% GM).
AI the Main Driver
$10B order from a fourth major customer (likely OpenAI) adds to Broadcom’s AI pipeline alongside Google, Meta, and ByteDance.
AI XPU chips led growth, contributing ~65% of AI revenue and growing 28% sequentially.
Broadcom disclosed a $110B backlog, with AI-related orders now outweighing non-AI.
Non-AI Segment Still Weak
Non-AI semiconductor revenue (~$4.0B) remains soft.
Broadband showed resilience, but storage, enterprise networking, and industrial chips stayed flat or declined.
Management sees a non-AI recovery only by late FY26.
FQ4 Guidance
Revenue: $17.4B (+24% YoY).
Semiconductor sales: $10.7B (+30% YoY), with AI at $6.2B (+66% YoY).
Software: $6.7B (+15% YoY).
Adjusted EBITDA: $11.7B (+28% YoY).
Bottom Line
Broadcom’s massive AI order has investors looking past its sluggish non-AI business. With AI revenue expected to surge more than 60% in FY26, Broadcom is strengthening its position alongside Nvidia in the high-end AI chip race.
Comments
Post a Comment