Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Charlie Kawwas, President, Semiconductor Solutions Group; and Ram Velaga, President, Infrastructure Software Group.

Also joining is Kirsten Spears, Chief Financial Officer. As we announced, Kirsten will be retiring June 12th, and today we have joining us our incoming Chief Financial Officer, Amy Tiener.

Thank you, Kirsten, for your leadership over the past 12 years. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the second quarter fiscal year 2026.

If you did not receive a copy, you may obtain the information from the investor section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for one year through the investor section of Broadcom's website.

During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2026 results, guidance for our third quarter fiscal year 2026, as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments.

Please refer to our press release today and our recent filings with the SEC for information on risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to US GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis.

A reconciliation between GAAP and non-GAAP measures to the extent possible is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results.

I will now turn the call over to Hock.

Thank you, Ji. In Q2 in Q2, revenue was a record $15 billion as we grew 79% year-on-year.

Driving this growth was AI semiconductor revenue at a record $10.8 billion, up 143%... Oops, sorry.

Let me restart, guys. Thank you, Ji.

Thank you, everyone, for joining today. In our fiscal Q2 2026, total revenue reached a record $22.2 billion, up 48% year-on-year, above our guidance on strength in AI semiconductors.

Q2 operating margin was a record 67%, and adjusted EBITDA was a record 69% of revenue, which was above our guidance. Even as our revenue scales up massively driven by AI, our operating and EBITDA margins remain strong and stable.

Turning to semiconductors, Q2 revenue was a record $15 billion, as I said before, as we grew 79% year-on-year. Driving this growth was AI semiconductor revenue at a record $10.8 billion, up 143% year-on-year and above our outlook.

Networking represented almost 40% of our Q2 AI revenue. Demand for XPUs and networking is simply insatiable.

During the quarter, bookings for AI semiconductors were over $30 billion against the $10.8 billion we shipped. In the second half of 2026, we expect AI semiconductor revenue to double from the first half we shipped last from the shipped this year.

Consistent with this trend, in Q3, we expect AI semiconductor revenue to accelerate to $16 billion, up over 20 to up over 200% year-on-year. For the full year 2026, we expect to achieve to achieve AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025.

Now, we expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion. We expect AI semiconductor revenue growth to continue in fiscal 2028 based on the following initiatives we have with our six core customers.

As you are aware, with Google, we announced in April that we entered into a long-term agreement to develop and supply multiple generations of TPUs and AI networking. Our relationship continues to be strategic and very substantial as we continue to deliver vastly superior technology and execution compared to other alternatives.

This ability to provide differentiated value to Google ensures that our business will sustain and grow for the foreseeable future. For Anthropic, as for 2026, we're providing access to Broadcom TPU-based compute of over 1 GW.

In April, we entered into an agreement to enable Anthropic to access another 5 GW of next-generation TPU-based compute beginning in 2027. For OpenAI, we have delivered silicon, and we are on track for production late 2026.

We have a contractual commitment to deploy 1.3 GW in 2027 as part of the larger 10 GW that by 2029 agreement we announced last year. For Meta, in April, we announced a partnership to deliver multiple generations of MTIA XPUs, and under this agreement, we expect to deploy 3 GW through to the through the end of 2028.

The initial order for 1 GW, which includes XPUs and our networking, has been received and will start deliveries in the second half of 2027. For our other two customers, we expect shipments to begin late 2026 and accelerate into 2027.

To date, we have received purchase orders totaling $6 billion. While we have significant IP and execution leadership in XPUs, networking is key to building scalable XPU and GPU clusters, and here in networking, we have at least one generation of technology and product leadership.

For scale-up within racks, we enable direct-attach copper based on our industry-leading 200G and 400-gig SerDes, driving co-packaged copper with Ethernet and PCIe switches. For scale-out between racks, we have been shipping the industry's only 100-terabit Ethernet switch, the Tomahawk 6, for over a year.

We will now be taping out our next-generation 200-terabit switch this quarter, and in CPOs, which is co-packaged optics, 1.6-terabit DSPs, CW and EML lasers, we are the de facto standard in the industry. To extend AI subclusters across data centers, we remain the industry leader with our Jericho3 and Jericho4 fabric solutions, enabling the world's largest deployments on and multiple hyperscalers.

Our strategic vision is to bring together Broadcom's leading technology and investor partners with the strongest balance sheets to deliver at scale sufficient compute capacity at the lowest cost and power for the leading AI frontier labs, including Anthropic and OpenAI. To deliver this vision, we are creating the AI XPV platform with Apollo and Blackstone and other leading investors to deploy more than 20 GW of compute capacity through 2028.

The first tranche of this platform, valued at $35 billion, is, in fact, currently been launched by Apollo. Now turning to non-AI semiconductors, Q2 revenue of $4.2 billion was up 6% year-on-year.

Bookings during the same period exceeded $6 billion, which is a clear indication we are on the path towards a full cyclical recovery. Broadband, server storage, and enterprise networking together were up, partially offset by seasonal decline in wireless.

Consistent with this trend, in Q3, we forecast non-AI semiconductor revenue to be approximately $4.5 billion, up 12% from a year ago. In summary, we expect Q3 semiconductor revenue revenue to be [coughs] $20.5 billion, up 124% year-on-year.

Let me turn to Infrastructure Software segment. Q2 software revenue of $7.2 billion was up 9% year-on-year, in line with our guidance.

Bookings continue to be strong as we sustain ARR growth of 17% year-over-year. For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year-on-year.

We just released VMware Cloud Foundation 9.1 focused on improving infrastructure efficiency, security, and support for enterprise AI inferencing workloads. With strong server demand globally, the deployment of VCF 9.1 for on-prem cloud computing is extremely strong, driving robust revenue growth.

This release adds heterogeneous compute support across GPUs and CPU architectures, including AMD, Intel, and Nvidia platforms, enabling customers, enterprise cloud customers, to run AI, Kubernetes, and traditional virtualized workloads on a common private cloud environment. To sum it up, for Q3 2026, we expect our consolidated revenue to grow to $29.4 billion, up 84% year-on-year.

We expect operating margin to be stable at approximately 67% of revenue and adjusted EBITDA to be at approximately 68% of revenue. With that, let me turn the call over to Kirsten.

Thank you, Hock. Let me now provide additional detail on our Q2 financial performance.

Consolidated revenue was a record $22.2 billion for the quarter, up 48% from a year ago. Gross margin was 77.1% of revenue in the quarter, down 230 basis points year-on-year as semiconductor became a larger proportion of our product mix.

Consolidated operating expenses were $2.2 billion, of which $1.6 billion was R&D. Q2 operating income was a record $14.9 billion, up 52% from a year ago.

Note that even with the decline in gross margin, operating margin increased 200 basis points year-over-year to 67.3% as operating expenses remained relatively flat. Adjusted EBITDA of $15.2 billion, or 69% of revenue, was above our guidance of 68%.

Now a review of the P&L for our two segments, starting with semiconductors. Revenue for our Semiconductor Solutions segment was a record $15 billion, with growth accelerating to 79% year-on-year driven by AI.

Semiconductor revenue represented 68% of total revenue in the quarter, and AI semiconductor revenue represented 49% of total revenue. Gross margin for our Semiconductor Solutions segment was approximately 70%.

Operating expenses of $1.2 billion reflected increased investment in R&D for leading-edge AI semiconductors and represented 8% of revenue. Semiconductor operating margin of 62% was up 460 basis points year-on-year, reflecting our strong operating leverage.

Now moving on to Infrastructure Software. Revenue for Infrastructure Software of $7.2 billion was up 9% year-on-year and represented 32% of revenue.

Gross margin for Infrastructure Software was 93% in the quarter, and operating expenses were $1 billion in the quarter. Q2 software operating margin was up 310 basis points year-on-year to approximately 79%.

Moving on to cash flow. Free cash flow in the quarter was a record $10.3 billion and represented 46% of revenue.

We spent $231 million on capital expenditures. We ended the second quarter with $19.6 billion of cash compared to $14.2 billion in the prior quarter.

We ended the second quarter with inventory of $4.3 billion as we continued to secure supply to support strong AI demand. Our days of inventory on hand were 86 days in Q2 compared to 68 days in Q1 in anticipation of accelerating AI semiconductor growth in the second half of the year.

Turning to capital allocation. In Q2, we paid stockholders $3.1 billion of cash dividends based on a quarterly common stock cash dividend of 65 cents per share.

Now moving to guidance. Our guidance for Q3 is for consolidated revenue of $29.4 billion, up 84% year-on-year.

We forecast semiconductor revenue of approximately $20.5 billion, up 124% year-on-year. Within this, we expect Q3 AI semiconductor revenue of $16 billion, up over 200% year-on-year.

We expect Q3 Infrastructure Software revenue of approximately $8.9 billion, up 31% year-on-year. Moving on to margins.

As the proportion of AI revenue significantly grows in Q3, we expect Q3 consolidated gross margin to be down to approximately 74%. This decline in gross margin does not represent a structural change in semiconductor margin; rather, it reflects product mix between semiconductors and Infrastructure Software.

Regardless of the impact to gross margin, we expect Q3 operating margin to be 67%, which is flat quarter-on-quarter, demonstrating our strong operating leverage. We highly recommend that investors model semiconductor and Infrastructure Software margins separately to properly reflect the impact of changes in total revenue mix going forward.

We expect the non-GAAP tax rate for Q3 in fiscal year 2026 to be approximately 16% due to the impact of the global minimum tax and the geographic mix of income compared to that of fiscal year 2025. In Q3, we expect the non-GAAP diluted share count to be approximately 4.94 billion shares, excluding the impact of potential share repurchases.

That concludes my prepared remarks. Operator, please open up the call for questions.

Good afternoon. Thank you for taking my question.

Thanks for all your support, Kirsten, and Amy, welcome to the team. First, just a quick housekeeping item, Hock.

On this fiscal year, AI sort of 2x growth second half over first half, that would put AI revenues over $60 billion with sequential growth in fiscal Q4. You gave us this $56 billion number, which is only 1.5x, half-over-half growth, with 4Q AI actually being down sequentially.

If you could just help us kind of square the numbers there. For my real question, back in December of last year, you talked about an AI backlog next 18 months, $73 billion.

Market sort of took that number, spread that linearly over six quarters, but we know that the backlog is always more front-loaded over the first four quarters, right? Sure enough, you're going to deliver around 80% or more of that backlog in this fiscal year or first four quarters.

Just given the strength of all your programs, the broadening of the customer base, accelerating year-over-year trends in your AI shipments, all the multi-gigawatt partnerships that you just articulated today, which is mostly set to start to fire next year, is it fair to assume that your 18-month AI backlog second half of this year to first half to all of fiscal 2027 sits at $200 billion or better?

That's a very complicated set of number questions. To begin with, let's start with 2026.

Doing a math basically 2x to 2x, the first half, we ship about in total AI revenue, something in the range of $19 billion, if you're going to be precise. If you're and if you do what I indicate and 2x that in the second half, you get to pretty much in the range of what we're talking about, which is around $56 billion, Harlan.

That set of numbers is still very, very, it does tie up very well. Now, the optic question on the second half, which you've gone into very detailed analysis of, is, yeah, we will keep that momentum going as we expect to see in 2027.

What we will see in 2027 is continued growth of the level we're talking about. If you drive on that basis of what we are seeing here, almost 2x what 2000 in the range of 2x what 2026 will be, I think you will easily see that 2027 will exceed very easily $100 billion in 2027, which is pretty much what we indicated last quarter, and we are continuing to say that it will be over $100 billion in 2027.

In that sense, if anything else, it might be, based on what we're doing, very much on track, if not stronger. We're not trying to guide you every quarter what 2027 would be like.

We basically say it continues to be in excess of $100 billion in 2027, but it's on a same trajectory as we are seeing in the back half of 2026.

Got it. Okay.

Thank you, Hock.

Hey, good afternoon. Thanks for taking my question.

Hock, I wanted to ask you, interquarter, you had that 8-K with the long-term agreement with Google. I think obviously you're probably not going to tell me what the total value is there, but I think there's a lot of concern about share within that customer.

I was just kind of curious, you're now that you have this agreement, maybe you could speak to a little bit more in terms of your confidence, and if there's upside to that customer, is it a fixed amount or is there share? Is there any way you can kind of add some color to that agreement that came out?

[laughs]. It's a very, very strong agreement.

It basically reflects the strength of the partnership we have simply because of the products we do, the multi-general products, and the intellectual property we deploy into this whole program. To answer your question specifically, it's a commitment that is very substantial in dollars, very, very substantial amount of dollars.

Now, we also accept the fact that while we like to win every design in that program, we also accept the fact that given the growth of consumption of, and development and consumption of AI compute even by our partner, Google, that we fully expect that there'll be some diversity of sources for them. Our commitment from them is a very substantial dollar amount.

Thank you.

Hi. Thanks for letting me ask a question, and congrats to both Kirsten and Amy.

Question on the gross margin side of things. I know, Kirsten, you talked about it going down due to the mixed dynamics within the semis versus the software side, but given the strength on the software side in the quarter, it seems like gross margin is falling a little bit harder.

Behind the scenes, can you just talk a little bit about what the drivers within semis are? Is that the XPU versus the networking side of things?

Is that trend likely to continue next year? Are there rack scale versus chip scale, all those sorts of dynamics?

Any color you could give on that would be helpful.

Certainly as our semiconductor business grows, just to reiterate, on a consolidated basis relative to our software business, you're going to have a decline in margins, right, a bit. Right, you'll have compression, but remember that we're accretive of because we have strong operating leverage, right?

Our operating margins will stand up a bit over time to that. Within semiconductors, we've always said our ASICs, the TPUs, some of the wireless business has lower margins.

As the TPUs continue to accelerate, there'll be pressure overall on margins. The connectivity side, the AI networking side of the business has very rich margins, it'll offset it somewhat as we go.

As Kirsten said in her remarks, structurally, the semiconductor margins remains very stable and very solid. It's the mix, particularly the mix between software and non-AI to the very, very rapidly growing AI semiconductor that is just diluting gross margin.

The rack versus chip side of things, is that all clarified now?

No rack. No racks.

It's all chips.

Only the chip business.

We only chips.

Only chips.

Perfect. Thank you.

Hey, guys. Thanks.

Appreciate it. Wanted to ask about 2027, Hock, with regard to previously, you've talked about the TAM being kind of it Well, it's kind of a longer-term question, actually.

You've talked about the TAM being $10 to $20, and whatnot. It seems that one of your competitors talked recently about the TAM per gigawatt going up a lot, as we go throughout the decade.

It seems, it wasn't just due to infrastructure. It was due to the compute and networking components and other things.

Perhaps you're familiar with that the comment that Jensen made where the overall infrastructure is going from something around 50-something towards 100 and the compute content going way up. Are you seeing the same thing as you go throughout the long term as that potentially being an accelerator, what you've already outlined, in terms of your TAM per gigawatt and how are you thinking about that?

Thanks a lot.

Sure. I think the accelerating part or if you talk about power, realize one thing.

It's the dollars per gigawatt, the content dollars of racks per gigawatt is not accelerating that much, because you are creating chips that have that each individual chips are driving higher and higher power. You're driving less chips, though the price ASP of each chip is going up in price.

Dollars per gigawatt, billions of dollars per gigawatt, is relatively stable, but the number of gigawatts will keep as will accelerate, as I think some of our remarks indicate. That's what we are seeing, that the amount of gigawatts required, compute capacity, as measured by number of gigawatts, is growing very fast.

We're seeing that. We are seeing that particularly to the point where for even two of our customers we're talking about, which is Anthropic and OpenAI, for which we're creating this platform to enable them to run sufficient compute power.

We're talking about capacity, as measured by gigawatt power, that are way ahead of what we fully what we've expected, say, six months ago. That's just this, guys.

We're not talk about the consumption beyond the XPV platform we are talk we have announced here from our other customers, which is Google own internal workloads, Meta's workloads, and any other customer and the other two customers we have. Fold that in, and you're talking about gigawatts in totality, if you ask about 2027 or 2028, that will continue to grow.

We expect, in fact, 2028 to be a substantial growth from what we are forecasting in 2027.

Thank you, Hock.

Thanks a lot, Hock. I wanted to ask you about supply and your ability to get incremental volume of wafers and HBM.

As I look at some of your competitors, they're kind of able to drop, $20 billion out of thin air and get incremental, wafer supply. I'm wondering, do you feel pretty good about, if a customer comes to you, are you able to get upside in terms of wafers and HBM?

Are you beginning to consider maybe using other foundries to add more optionality to your supply? Thanks a lot.

Getting supply is not just about dropping money, Tim, though that does help. No, we are very comfortable that we have been able to secure supply of the types you mentioned about for our needs: 2026, 2027, working on 2028 and 2029 right now.

Right, but if a customer comes to you and wants incremental supply, are you able to go to your suppliers and get it the way that it seems some of your competitors are?

Oh, customer has been coming to us incrementally over the last few months. Expect that to continue.

By and large, yes.

Hock, thank you.

Hi, guys. Thanks for taking my question.

Hock, you gave some gigawatt shipment targets for next year for your various customers. I just want to know, are those any different?

Do they contemplate any change from what you said last quarter, right? I think you'd said that was close to 10 GW you'd be shipping in 2027.

Can you just help us shape the year? It sounded to me like you expected that to be more back-half loaded in 2027 given the shape of the ramps.

The most importantly, is there any change, that is, it more gigawatts or less gigawatts or the same gigawatts versus what you were suggesting last quarter?

Good question. For 2027, we indicated about 10 GW shipment in 2027.

That's still very much intact. There will be shipping 10 We're planning to ship 10 GW in 2027, and that nothing has changed.

Back-half loaded, to that extent, yes, and which really provides an interesting trajectory into 2028 with this back-half trajectory. So 2028, we expect a lot more gigawatts.

Got it. That's helpful.

Thank you.

Good afternoon. Thanks for taking my question.

I was wondering if you could comment a little bit on the profile of your networking business, Hock. As we head through fiscal 2026 and 2027, about 40% of AI revenue this quarter, would you expect that to sort of fall back down as some of these custom ramps ramp into the end of the year into early next year, or would you sort of expect to stay at the upper end of that range, and maybe talk about when you see some of the optical and CPO revenue becoming meaningful?

Thank you.

That's a hell of a great question, Jim. It's just very difficult to answer because of how do we predict that.

Because there are quite a few moving parts there. One of which is to start with is as more as as our volume as more and more of our customers turn to XPUs.

Obviously, XPUs uses very much our more a lot of our networking components across the board, so that's great for us and that that drives increase in consumption. It also means that we have been able to sell networking to non-XPU footprints.

That part of it will dilute the growth rate. What and this 40%, I call I consider as a very well, I'm almost a situation where stars are aligned where we're shipping a lot of networking, of our networking, to non-XPU, while the growth of XPU are obviously allowing us to grow this networking business to our XPUs, and we get to 40%.

I see that as probably as high as that percentage of total AI revenue would go. Not the first time I indicated that.

The more expected percentage as a share of total AI revenue for networking would be closer to around 30 30%.

Hey, Hock, thanks for taking the question. I noticed with the most recent deal with Anthropic that you guys are using Broadcom chips as a backstop for the deal.

Do you expect more deals to come like this in the future? Then as you start to seed the AI environment, is there any way you're thinking about financing in the future?

You going to continue to do it with chips or anything that you can offer on that? Thank you.

Could you repeat that question, especially the front end? I didn't quite get what you're saying here.

I don't want to answer the wrong way.

Sorry, Hock. Essentially, the most recent deal with Anthropic is being backstopped by Broadcom chips.

Do you think that in the future you will see more deals done this way? Then any comments on the future financing of deals with the large the large AI models?

Thank you.

Oh. I have to correct you on that.

Our deal with Anthropic and that we to basically talk and basically release disclosed in our 8-K recently. As the deal we did with Anthropic is we use our TPU chips that we developed to provide the compute capacity to Anthropic.

We want that It wasn't backstopped in that sense. We were the ones providing the chips to Anthropic.

We were the ones providing that compute capacity, Anthropic.

Good afternoon. Thanks for taking the question.

I guess, Hock, in recent years, you've talked about really focusing your efforts on very large XPU platforms. I'm just curious, we're seeing many kind of XPU-attached derivatives, across interconnects, storage, other.

I'm wondering if there's any sort of programs there that are more niche that are whetting your appetite.

Not I don't think so. I think our business model is actually very, very straightforward, which is we are developing XPUs, custom AI accelerators, for use by our customers who are pretty much all LLM developers, whether it's for training or inference.

We are also creating a portfolio of critical components to enable these XPUs, and even GPUs, to be clustered and form better performance. That continues to be the model we do, which is we provide chips, technology in the form of chips, whether they be AI compute accelerators, we call XPUs, or networking chips that cluster them together, be it switches, PCIe Express, connectors, DSPs, lasers, NICs, and routers.

That's very much still the model we employ in semiconductors. We still, as you can see our financial model, that and our the program we go would drive towards a chip business model through the technologies we provide.

What we're doing to enable some of this LLM players to be able to get access to the volume of compute capacity, the large gigawatt of compute capacity they need to scale up their models, is we are, as I announced here today, creating, in partnership with guys with the best balance sheets around, a vehicle to basically have these chips funded for these LLM players who otherwise might have difficulty getting access to our technology, which provides them with the lowest power and the lowest cost.

Hi. Thank you for taking my question.

I have a question on Infrastructure Software business. Are you guys seeing any impact of AI, agentic AI, on your software growth and renewals?

If you can just talk about some sort of long-term growth for that business.

We're not seeing it. If anything else, as I reported, the high volume of core count of CPUs selling together with GPUs is driving some accelerated growth of our VMware business.

As you can see in Q3, we're seeing an accelerated growth, and we expect that to continue, I guess, for the next multiple quarters as this demand picks up. Long-term, given the kind of products we do in Infrastructure Software, very, very close to literally the hardware, basically the hypervisor, which is where we our products are, we do not expect to see any impact on software products.

Thanks a lot. Hock, this is very interesting, because the gigawatts that you've got laid out for the different customers, it makes it very clear that the two that are offering kind of CSPs, I wouldn't say CSPs, but consumer versions of AI, Anthropic and OpenAI, have very large gigawatt commitments in the out-years.

I know part of that is catch-up because they've just started late, where your oldest customer has been doing this for quite some time. Even part of Google's is offering cloud services to other folks too.

Are we seeing a shift here? I know that initially a lot of the XPUs and the AI services were through the hyperscalers with their own custom workloads.

We've talked about that ad nauseam. Now you're seeing AI finally hit the enterprises, and you're seeing Cloud take off with a programming which is sweeping everybody.

Can we expect then that there's going to be this big second wave of demand that's driven as AI starts hitting the enterprises and as consumer start getting access to it or finding word usable tools? Because the numbers you're saying here are significantly different for that for the two classes of customers.

That's a very interesting thought here. You may be very well right that enterprise consuming AI is still relatively at an early stage of the game.

Having said that, what we are also seeing is a lot of what enterprise is consuming are tokens. They're buying a lot of these tokens from the platforms, the product API platform API they pull from the platforms of this same name of customers we talked about, which is Anthropic, OpenAI, Gemini.

These are the large guys. They're pulling it from, and that's where I think a high substantially most of this tokens consumption are tied to those LLMs.

These LLM guys, as they productize their frontier models, whether it be Opus 4.7, ChatGPT 5.5, or Gemini 3.5, comes back to the same end demand on compute capacity we provide to all these guys. Even growth of enterprise demands that we're now starting to see as enterprise starts to consume AI tokens, for their own workloads, for their own productivity users, as consumers do, they're buying from the same source, these same few guys.

That's what's driving this very large I call it insatiable growth in compute capacity that we are experiencing, and we see that continuing to happen now to through 2027 and what we're seeing now through 2028 as well. This is getting to be quite a sustainable and steepening trajectory of demand.

If I could, doesn't this change the dynamic what we've talked about before? You talked about seven or so customers for your XPUs.

If this is actually happening, what we're seeing, Google offering cloud services for TPUs, it opens up XPU access to all the smaller companies that don't meet the criteria for doing their own ASICs that you could partner with to Broadcom's technology through these platforms. Is it Why would that not be the case?

I guess the answer to that is it's possible, but the reality of the whole issue is this the compute capacity most of the AI generated are provided in the form of SaaS, SaaS models. APIs are pulled from the clouds, whether they're from Bedrock, Vertex, Azure, or direct first-party from the It is still provided in the cloud.

Most of all that demand, at the end of the day, in terms of compute capacity, which is what we're doing, comes from those few large frontier model developers and the products they generate to supply to consumer and enterprises globally. Source of demand comes from those frontier model labs who are developing the products which consumer and enterprise, like you and us and our companies, are consuming.

What we're doing is providing that capacity to that demand source as opposed to going to a company or a bank and trying to provide them XPUs, and then they having to try to build it, run or create a software stack to then write applications and running themselves. I'm sure there are a few enterprises doing it now, but there are not many.

It's early stage in that whole game. Right now, the true most of the demand are coming from the frontier model players who are creating products.

Things, as I said, like code assistants, like, our engineering verticals, which are really coming from the same source of guys who are doing all those few guys doing the frontier models. It's not really coming from 100,000 companies directly trying to buy XPUs or, for that matter, GPUs.

It's not.

Great. Thank you.

You talked about $30 billion of AI bookings in the quarter, which is a lot, I guess, relative to this quarter and next quarter shipments. Can you talk about the dynamic, why is there so much backlog now, or is there You sort of said you can react to upside with supply.

Just, why so many bookings this quarter relative to revenue?

There's [laughs] that huge demand of compute. See, a lot of large these few six customers now, they realize that lead time to get compute, you need lead time.

You need to be thoughtful. It's not just asking for wafers to get the chips, or memory to ensure the HBMs are available or DRAMs available.

They're also talking about, hey, I got to have the power, the power shell. All this is planning ahead, and what we are seeing, the bookings that are coming, it's not for immediate delivery.

Some are hoped to have, but the reality they all accept is they need to align quite a few other things in place before they can deliver. They're placing their orders early, and they're placing their orders now, and they're placing their orders in fairly huge demand, which basically gives us a lot more visibility than we normally otherwise would have in semiconductors.

Our visibility runs all the way to 2028 right now. Three months ago, I can tell you visibility pretty much 2027.

Today, it runs to 2028. That's a big part of the reason why we are creating this XPV platform as really the platform to plan to build up this capacity put in place such capacity for those frontier model customers of ours who are seeing, as you guys are seeing in some of the financials they're telling you and some and in the experiences you are you have, which is driving huge amount of consumption of tokens from those compute capacity we're giving them.

We have the benefit now of a lot of lead time, and we're planning that. It's not because of shortage of our components.

It's also the other elements that need to be put in place, which particularly relates to power and broad connection to into an infrastructure globally or through America at least, that enables inference to be distributed to would be distributed through to consumers and enterprises throughout the country. It's we're just getting a lot of lead time.

Great. Helpful.

Thank you.

Hey, guys, thank you for taking my question. In the past, you've talked about sort of a $15-$20 billion per gigawatt of compute and given the 10 that you implied is what you'll be doing next year, implies a much larger number than the $100 billion.

You've also mentioned that the value per gigawatt does vary per project. I guess how should we think about the evolution of your revenue per gigawatt over time as we would expect, on one hand, gen-to-gen pricing to increase on programs you're already shipping, but also there are other projects that are entering the model?

Thank you.

Our revenue our content per gigawatt will increase. Put it simply.

Our content from the fact that our compute chip will XPU will go up in price very dramatically, particularly when you not only put SRAMs into it, sparse cores, you start putting embedding CPU cores into the same XPUs and making those chips basically multi-die with lots of HBM. That trajectory of content increases increase will go up.

It just doesn't go up every month, every six months, or every quarter, but it will follow one generation to the next that the content will grow per gigawatt.

Thank you.

Thank you, operator. Broadcom currently plans to report its earnings for the third quarter of fiscal year 2026 after close of market on Wednesday, September 2nd, 2026.

A public webcast of Broadcom's earnings conference call will follow at 2:00 p.m. Pacific Time.

That will conclude our earnings call today. Thank you all for joining.

Cherie, you may end the call.