Broadcom Inc at Goldman Sachs Communacopia & Technology Conference Transcript

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

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : If you just step back and think about the top 2 or 3 priorities for Broadcom over the next few years, what are they? And then if we sit down here again in five years, what do you think is going to be the one thing that surprises investors the most?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : If you think philosophically about AI for a second, maybe help us understand your vision personally for where AI is going as a technology. Why does the world need AI? How useful do you think it's going to be? Is it going to live up the amount of investment that the investment community is putting into it today? 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 09, 2025 / 9:25PM, AVGO.OQ - Broadcom Inc at Goldman Sachs Communacopia & Technology Conference

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Yes. Are there any use cases for AI that excite you most personally in terms of utility, monetization or otherwise?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Excellent. Maybe you want to turn it back to Broadcom's business for a second, but maybe if there's a --

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Let's talk about your business. You just guided your fiscal '26 AI revenue to grow on, previously in the 60% range. On the earnings call last week, you had -- you announced that you expect this growth to accelerate materially as now you've converted another customer who's focused on inference. Maybe help us understand the broader trend you're seeing among customers here. Is the demand intensity higher for inference or for training right now? 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 09, 2025 / 9:25PM, AVGO.OQ - Broadcom Inc at Goldman Sachs Communacopia & Technology Conference

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : You mean -- give us a sense for 2026, how big is the acceleration beyond the 60% you've already called for? And more importantly, do you think that growth rate is even faster in '27 for you?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : That's a good CAGR, Hock.

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Very good. It's great to hear that -- the detail. Just one last question on this AI revenue piece. You've talked previously about your three existing customers. You've added a fourth, and you've talked about three additional prospects you have in the pipeline. Maybe just kind of give us a sense about, do you see a universe of potential customers outside those four plus three prospects? Or is it pretty much those seven is what you see as the potential opportunity?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Okay. Fair enough. Maybe just go a little deeper on some of the customer side of things. I think in the past, you said that you view companies that have their own LLM capabilities to be the most valid important customer prospects. Separately, I think you've also said that you want to pursue largest volume opportunities available in the market. So maybe give us -- investors a sense of how do you diligence the different customer prospects? Can you discriminate customers between ones that have promise and the ones that are a little bit less interesting to you? How do you make that determination?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Okay. I think it's easy. Relative to competitive landscape, I think, the conventional wisdom out there in the investment community is probably that custom ASICs are good for internal workloads and merchant GPUs are more broad-based, and they're good for more of the external workloads as well as internal workloads. I think we've seen more than a few headlines of the advantage of one of your largest customers on the custom ASIC side and what's happening there. So I'm kind of curious, do you see that conventional wisdom shifting at all? Or do you see it changing? Do you see a point in time where enterprises are going to have more software capabilities and actually are able to use ASICs to some of the major CSPs?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Very fair. And then also serving the custom compute segment. Can you maybe talk about how you add value there and the defensibility of your position? In other words, talk about some of the core IP that you add or you augment your customers' design with the value you provide through the manufacturing process. But to the point, when investors ask what -- how defensible is your position? And are you at risk of your customers, your biggest customers going straight to a foundry with their solution? How do you answer that?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Yes. That's a perfect segue into the next question I am going to ask about networking because clearly, that's a mainstay franchise for the company historically. Talk about -- I think you've previously talked about in these AI networks, I think you said scale-up opportunity is about 5 times to 10 times larger in content relative to scale out. How do you think about the adoption curve for Ethernet and scale up? And just sort of talk about your sort of overall product portfolio and how it gets there?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : And then if you think about your outlook for the Networking business, obviously, some -- however much AI grows, how do you think about the networking business tracking that envelope faster, slower, the same?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Very good. One question I get a lot of times is on the Co-Packaged Optics and their role in the industry going forward. Maybe how ready is that technology, in your opinion, for mainstream deployment or large customer deployment? And how do you think the adoption curve is going to go for CPO?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : No, it's quite okay, quite okay. And then finally, I think you talked about competitively, your belief is that Ethernet is going to win in the end. Maybe talk about over what time frame you think that occurs? And just kind of like any of the factors that would slow that down from happening?

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Yes. I'd be remiss if I didn't touch on your software portfolio for a moment --

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : Maybe just talk broadly. I mean you've obviously done a great job of acquiring companies in the enterprise, where you have very sticky customer bases, very -- driving very high margins over time for that business. Maybe talk about sort of the durability of your software franchise as you see it, whether it be in VMware or all the products you've had up until now on the existing business? And then maybe just kind of address your appetite for M&A in the software space? Or are you 100% focused on the AI opportunity at this point? 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 09, 2025 / 9:25PM, AVGO.OQ - Broadcom Inc at Goldman Sachs Communacopia & Technology Conference

Question: James Schneider, Ph.D. - Goldman Sachs Group Inc - Analyst : That's a great place to end it. Thank you very much, Hock, for being here. We really appreciate it.