Broadcom Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Toshiya Hari - Goldman Sachs - Analyst : Thank you. I definitely want to spend most of our time on longer term, more strategic areas of the business. But you did report results last week. So I just wanted to touch on that specific to the business that you run, which is semiconductors. What would you say were the key highlights in the quarter? And were there any surprises relative to your internal expectations plus or minus?

Question: Toshiya Hari - Goldman Sachs - Analyst : Great, you talked a little bit about the full year AI revenue outlook improving from or growing from $7.5 billion to now $12 billion between custom compute and your high-speed networking business. What are you seeing between those two, and I realize it's a little bit early, but into fiscal '25, is there any sort of indication outlook that you can provide?

Question: Toshiya Hari - Goldman Sachs - Analyst : Okay. Understood. I appreciate that. Maybe taking a step back, you have technology leadership across pretty much all your franchises that you run in semiconductors and the AI businesses that you spoke about really no exception. Maybe spend a couple of minutes discussing the key pillars or the foundational IP that really drives the competitive strength?

Question: Toshiya Hari - Goldman Sachs - Analyst : Really compelling. I appreciate that. Maybe a question on XPU or custom compute. There's a big debate as it pertains to merchant versus custom? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 8:05PM, AVGO.OQ - Broadcom Inc at Goldman Sachs Communacopia & Technology Conference

Question: Toshiya Hari - Goldman Sachs - Analyst : Over the past two days, we've had leadership teams from Amazon, Google and Microsoft. We had AMD. We agenda this morning. So all sorts of views out there. I feel like at Broadcom a couple of years ago, the view was merchant typically wins in the end, something happened between then and now or very recently. And you're very aggressive in the custom compute space. So what changed? And do you expect custom to outgrow merchant over the medium to long run?

Question: Toshiya Hari - Goldman Sachs - Analyst : I think you've kind of thrown out this data point before, but the power savings that some of your big customers get by going customer relative to merchant and very significant?

Question: Toshiya Hari - Goldman Sachs - Analyst : Thank you. The other debate on which is more of the networking side that we hear from investors is Ethernet versus InfiniBand. Ethernet as the de facto standard I think you guys have said this and many of your competitors partners have said this. But in terms of I guess I wanted to ask you on InfiniBand, I guess if I'm a hyperscaler under what conditions would I be swayed toward using InfiniBand and Ethernet as the standard, what kind of circumstances, if you will, would I be swayed towards InfiniBand and in video is obviously quite loud about spectrum x. How does that product how does that platform compare with what Broadcom offers?

Question: Toshiya Hari - Goldman Sachs - Analyst : Okay. Thank you. That's very insightful. I appreciate that. We got a bunch of questions on co-packaged optics as well. When you announced the industry's first 51.2 terabit per second based on that CPO Ethernet switch platform for AI. As the industry leader, I guess a multipart question one, what are the key technological challenges as it pertains to CPO? When do you expect CPO to be ready for high volume and what are the pros and cons from your perspective.

Question: Toshiya Hari - Goldman Sachs - Analyst : It's great. I could go on for another 30 minutes easily. But unfortunately, we're out of time. Charlie, thank you so much for supporting the conference. I know you're a busy man and congrats on all the innovations.