you and I both uh have have have had a few opinions about this broadcom so good result Market hated it uh what what's going on yeah so broadcom beat on nearly everything except the revenue guy that was off Expectations by 1% that's $135 million on 14 billion dollar I digress I want I just want to say CEO and CFOs take note this is the way to do the call the uh Hawk tan it was a it was a freaking Masterpiece insights into the overall Market how broadcom was playing detail after detail splitting the market between very crisply between Ai and non AI Dan the Q&A was 39 minutes long okay I think everybody got a whack uh at at least one or two questions and hawk very patiently sometimes you know they ask the same question you didn't get necessarily irritated but that's the way to do that okay strong results three factors AI Contin AI revenues continue to grow and they go strongly second thing VMware bookings are accelerating and three Noni semis have stabilized which is crazy because uh the uh Broadband Market is still in the toilet based on the uh the Telos and the SP so let's start off with VMware right what I loved is Hawk just came right out and said we said pre-acquisition we're going to deliver 8.5 billion in iida within three years of the acquisition where are they well on the path to achieving or exceeding this goal in the next fiscal 25 Okay so that's I don't what is that two years early one year early it's early uh knock it out of the park ABV analyze booking values uh up 32% um and um yeah I mean VMware is going well but Dan I think the meme was VMware is just like ah crazy customers are canceling their contracts and uh rolling their own KVM or going to new tanic or or or red hator baby you know every like we want to do that well it's not in the cards right now um listen am I babe roof Roofing this one I mean there will be customers that will leave I I get that okay I think he's actually ushering them out he's carrying their suitcases he's offering Hawk himself is like let's go yeah yeah this is something that companies like sap should have done like years ago and by the way VMware on its own would never have done this okay let's snap to semis uh first of all uh 11 plus billion forecast for AI going to 12 twoth thirds of that is xpu or accelerator and onethird by the way that's eight billion dollars in xus that's almost twice as big as amd's data center business okay so factual it goes Nvidia broadcom and AMD and inside AI semis Uh custom AI accelerators grew 3.5x fabric ethernet switching that's Jericho um sorry uh uh Tom Hawk 5 and Jericho 3 AI Forex growth lasers and pin diodes 3x PCI Express switches doubled but hey there's non AI ai2 which was just very eloquently uh up sequentially right um believe Hawk believes they hit the bottom in Q2 and Q3 non AI networking was up 177% sequentially even though it was down 41% uh year onye and then bookings uh demand is up uh 20% sequentially and all of this even though Broadband is still in the toilet CEO CFOs take note watch how Hawk does it Hawk and Charlie show just just do what they do HW onomics baby Haws did I trademark that I don't know maybe someone else did you are we gonna debate on who no you said that I said that first I know I don't get a lot of Firsts but I occasionally say so like I said my my historic uh rise to relevance is all about on liners it's never about depth that's what you're for Buddy um I'm kidding I'm kidding I love you all um I'm so much older I'm like 60 years old D I won't hold that against you twice your age I never hold your inexperience against you yeah except when you do so listen um I went on I did an interview this morning on on on Yahoo Finance on this topic I think you missed the email I appreciate everyone for having me um but the I had a chance listen first of all Road's fine 60x per EIT top line I mean look only Nvidia returns more iida on Revenue than broadcom does I mean Hawk runs an amazing business and the distribution and diversification he's running this this isn't some new Cutting Edge Future Part I mean of course those xus are but like he's also selling like you know wireless controllers pcie cards and he's still making this kind of money that's what Hawk does that's why like when people get all disenfranchized I'm like why this is a great business it it just puts off tons and tons of cash um the software um the move I mean look CA performs well you know the the locko Run Mainframe business you know the brocade side of the house the semantic side of the house all good VMware is going to be good Pat and I tell you I'm being sincere when I say he is carrying the bags of customers out the door any sort of deal midterm long-term agreements that he had that he was able to shed he sheded he's okay with the 2080 rule he'll take the 20 30% biggest group of customers and then he'll let the long tail do what the long tail does he'll make more money he's chopped up the the heck out of the cost structure of that business and he will return Capital to both the business and the shareholders that's what he does well Pat the xpu part is really interesting because sell in sell out the design part how much is going in going out it's going out a lot faster meaning these companies are spending a lot more on this stuff than maybe it's being consumed and that's according to our data but I think the consumption is going to start to ramp really fast as this killer inference workload starts to ramp and XP are really really in a good position Pat we're showing the xpu accelerator to be like 20% faster growth than the GPU now having said that um I actually think it's going to be faster than that I think that's a conservative Outlook based upon sort of sentiment and I don't think the market fully appreciates the sentiment about what an Asic you know a well-designed Asic for you know drug Discovery recommendation engines filtering uh can do in terms of lower power performance and cost and of course vertical integration and control you'll never hear the cloud companies talk about vertical integration they're all going to go down the path of vertical integration and broadcom's become really astute at building these xus so they they know the plan they know the cost they know the structure and Hawk talked useum about how this kind of Market pivot is going on P I actually think this is a Killer Business and then by the way all this we're barely even talking about the fact that networking look all these companies that don't want to be beholden don't want to be locked into the kind of Nvidia andan and and and inra out of the rack and be like who are they going to go to like broadcom is super well positioned in this particular space that 12 billion number here's my take on why the market you know kind of crapped all over it is they wanted it to be like 15 they were looking for some it was the same as that whole kind of whisper number with Nvidia like oh they only are going to beat by two and a half billion next quarter it's like that's not good enough look they're trading at something like 26 times forward it's not a super high multiple or premium for a company that's delivering 60x per iida they've Diversified they've got different businesses Hawk always makes them profitable and one other thing Pat the whole Wireless and connectivity part of the business the PC uh this the stuff they do with apple and smart devices the ramp on that is just starting meaning like that old kind of part of their business they're not really on the AI side of apple as much in the in the devices but as this ramps it becomes what I think will be one of the most popular Parts this iPhone 1617 broadcom's got the most content out of any silicon provider to Apple that partnership is deep and we're not even seeing that in the numbers that's the part that's lagging right now so all of a sudden next year with these new PCS the new Macs the new iPads and the new phones broadcom will deliver Pat I'm super bullish on this one