Broadcom Inc.?s operating performance continues to exceed our base-case forecast, with revenues now expected to rise 23% in fiscal 2025 and another 32% in fiscal 2026 as AI tailwinds accelerate. Strong margins and massive free operating cash flow (FOCF) are expected to reduce leverage to below 1x area by fiscal 2026. Potential risks remain, including a slowdown in AI-related demand and the likelihood of another large, debt-funded acquisition, but we believe Broadcom?s growing scale and strong cash flow generation enhance its ability to absorb such events without impacting its ratings. Therefore, we raised our long-term issuer credit rating on Broadcom to 'A-' from 'BBB+' and all issue-level ratings on the company's outstanding debt to 'A-' from 'BBB'+. We also raised
