博通 (AVGO) 2024 Q2 法說會逐字稿

Welcome to Broadcom Inc. second quarter fiscal year 2024 financial results conference call. At this time for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom, Inc.

歡迎參加 Broadcom Inc. 2024 財年第二季財務業績電話會議。現在，我想將電話轉給 Broadcom, Inc. 投資者關係主管 Ji Yoo。

Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions.

謝謝接線員，大家下午好。與我一起參加今天電話會議的還有總裁兼執行長 Hock Tan；克斯汀‧斯皮爾斯，財務長；以及半導體解決方案部總裁 Charlie Kawwas。

Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the second quarter of fiscal year 2024. If you did not receive a copy, you may obtain the information from the Investors 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 Investors section of Broadcom's website.

Broadcom 在收盤後發布了一份新聞稿和財務表格，描述了我們 2024 財年第二季度的財務業績。本次電話會議正在進行網路直播，並且可以透過 Broadcom 網站的投資者部分收聽為期一年的電話會議音訊重播。

During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2024 results, guidance for our fiscal year 2024, 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 the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call.

在準備評論期間，Hock 和 Kirsten 將提供 2024 財年第二季業績的詳細資訊、2024 財年的指導以及有關商業環境的評論。我們將在準備好的評論結束後回答問題。請參閱我們今天的新聞稿以及我們最近向美國證券交易委員會提交的文件，以了解可能導致我們的實際結果與本次電話會議中所做的前瞻性聲明存在重大差異的具體風險因素的資訊。

In addition to US GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. The reconciliation between GAAP and non-GAAP measures 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'll now turn the call over to Hock.

除了美國公認會計原則報告外，博通還根據非公認會計原則報告某些財務指標。公認會計原則和非公認會計原則衡量標準之間的調節包含在今天新聞稿所附的表格中。今天電話會議期間發表的評論將主要涉及我們的非公認會計準則財務表現。我現在將把電話轉給霍克。

Thank you, Ji Yoo, and thank you, everyone, for joining today. In our fiscal Q2 2024 consol -- our results sorry, consolidated net revenue was $12.5 billion, up 43% year on year, as revenue included a full quarter of contribution from VMware. But if we exclude VMware, consolidated revenue was up 12% year on year. And this 12% organic growth in revenue was largely driven by AI revenue, which step up 280% year on year to $3.1 billion, more than offsetting continued cyclical weakness in semiconductor revenue from enterprises and telcos.

謝謝智宥，也謝謝大家今天的加入。在我們的 2024 年第二季財報中，抱歉，我們的結果是，合併淨收入為 125 億美元，同比增長 43%，因為收入包括 VMware 整個季度的貢獻。但如果我們排除 VMware，綜合營收年增 12%。而這 12% 的有機成長主要是由人工智慧收入推動的，人工智慧營收年增 280% 至 31 億美元，足以抵銷企業和電信公司半導體收入持續的周期性疲軟。

Let me now give you more color on our two reporting segments. Beginning with software. In Q2, infrastructure software segment revenue of $5.3 billion was up 175% year on year, and included $2.7 billion in revenue contribution from VMware, up from $2.1 billion in the prior quarter. The integration of VMware is going very well. Since we acquired VMware, we have modernized the products SKUs from over 8,000 disparate SKUs to four core product offerings and simplifying the go-to-market flow, eliminating a huge amount of channel conflicts.

現在讓我對我們的兩個報告部分進行更多介紹。從軟體開始。第二季度，基礎設施軟體部門營收為 53 億美元，年增 175%，其中 VMware 貢獻的營收為 27 億美元，高於上一季的 21 億美元。 VMware的整合進展順利。自從收購 VMware 以來，我們已將產品 SKU 從 8,000 多個不同的 SKU 升級為四個核心產品，並簡化了上市流程，消除了大量通路衝突。

We are making good progress in transitioning all VMware products to a subscription licensing model. And since closing the deal, we have actually signed up close to 3,000 of our largest 10,000 customers to enable them to build a self-service virtual private cloud on-prem. Each of these customers typically sign up to a multiyear contract, which we normalize into an annual measure known as annualized booking value or ABV. This metric ABV four VMware products accelerated from $1.2 billion in Q1 to $1.9 billion in Q2. By reference -- for reference for the consolidated Broadcom software portfolio, ABV grew from $1.9 billion in Q1 to $2.8 billion over the same period in Q2.

我們在將所有 VMware 產品轉換為訂閱授權模式方面取得了良好進展。自從完成交易以來，我們實際上已經與我們最大的 10,000 家客戶中的近 3,000 家簽約，使他們能夠在本地建立自助式虛擬私有雲。這些客戶通常都會簽訂多年期合同，我們將其標準化為年度衡量標準，稱為年化預訂價值或 ABV。該指標 ABV 四種 VMware 產品從第一季的 12 億美元成長到第二季的 19 億美元。作為參考——作為綜合 Broadcom 軟體產品組合的參考，ABV 從第一季的 19 億美元增長到第二季同期的 28 億美元。

Meanwhile, we have integrated SG&A across the entire platform and eliminated redundant functions. Year to date, we've incurred about $2 billion of restructuring and integration costs, and drove our spending run rate at VMware to $1.6 billion this quarter from what used to be $2.3 billion per quarter pre acquisition. We expect spending will continue to decline towards a $1.3 billion run rate exiting Q4, better than our previous $1.4 billion plan, and will likely stabilize at $1.2 billion post integration.

同時，我們在整個平台上整合了SG&A，消除了多餘的功能。今年迄今為止，我們已經承擔了約 20 億美元的重組和整合成本，並將 VMware 的支出運作率從收購前的每季 23 億美元提高到了本季的 16 億美元。我們預計第四季度支出將繼續下降，達到 13 億美元的運行率，優於我們之前的 14 億美元計劃，並可能在整合後穩定在 12 億美元。

VMware revenue in Q1 was $2.1 billion. It grew to $2.7 billion in Q2 and will accelerate towards a $4 billion per quarter run rate. We therefore expect operating margins for VMware to begin to converge towards that of classic Broadcom software by fiscal 2025.

VMware 第一季的營收為 21 億美元。第二季成長至 27 億美元，並將加速邁向每季 40 億美元的運行速度。因此，我們預計到 2025 財年，VMware 的營運利潤率將開始向經典博通軟體的營運利潤率靠攏。

Turning to semiconductors, let me give you more color by end markets. Networking, Q2 revenue of $3.8 billion grew 44% year on year, representing 53% of semiconductor revenue. This was again driven by strong demand from hyperscalers for both AI networking and custom accelerators. It's interesting to note that as AI data center clusters continue to deploy, our revenue mix has been shifting towards an increasing proportion of networking. We doubled the number of switches we've sold year on year, particularly in Tomahawk 5 and Jericho3, which we deploy successfully in close collaboration with partners like Arista Networks, Dell, Juniper, and Supermicro.

談到半導體，讓我透過終端市場為您提供更多資訊。網路方面，第二季營收為38億美元，年增44%，佔半導體營收的53%。這再次受到超大規模企業對人工智慧網路和客製化加速器的強烈需求所推動。有趣的是，隨著人工智慧資料中心集群的不斷部署，我們的收入結構已經轉向網路比例不斷增加。我們銷售的交換器數量比去年同期增加了一倍，特別是在 Tomahawk 5 和 Jericho3 中，我們與 Arista Networks、Dell、Juniper 和 Supermicro 等合作夥伴密切合作，成功部署了這些產品。

Additionally, we also double our shipments of PCI Express switches and mix in the AI back in February. We're leading the rapid transition of optical interconnects in AI data centers to 800 gigabit bandwidth, which is driving accelerated growth for our DSPs, optical lasers, and pin diodes. And we are not standing still. Together with these same partners, we are developing the next-generation switches, DSP and optics that will drive the ecosystem towards 1.6 terabit connectivity to scale out larger AI accelerator customers clusters.

此外，我們在 2 月也將 PCI Express 交換機的出貨量增加了一倍，並融入了人工智慧。我們正在引領 AI 資料中心的光學互連快速過渡到 800 GB 頻寬，這推動了我們的 DSP、光學雷射和 pin 二極體的加速成長。我們並沒有停滯不前。我們正在與這些合作夥伴一起開發下一代交換器、DSP 和光學元件，以推動生態系統實現 1.6 太比特連接，從而擴展更大的 AI 加速器客戶群。

Talking of AI accelerators, you may know our hyperscale customers are accelerating their investments to scale up the performance of these clusters. And to that end, we have just been awarded the next generation custom AI accelerators this for these hyperscale customers of ours. Networking these AI accelerators is very challenging, but the technology does exist today.

談到人工智慧加速器，您可能知道我們的超大規模客戶正在加速投資以擴大這些集群的效能。為此，我們剛剛獲得了為我們這些超大規模客戶提供的下一代客製化人工智慧加速器。將這些人工智慧加速器聯網非常具有挑戰性，但這項技術目前確實存在。

In Broadcom, we have the deepest and broadest understanding of what it takes for complex large workloads to be scale out in an AI fabric. Proof in point, seven of the largest eight AI clusters in deployment today use Broadcom Ethernet solutions.

在博通，我們對如何在 AI 結構中橫向擴展複雜的大型工作負載有最深入、最廣泛的了解。事實證明，目前部署的最大的八個人工智慧叢集中有七個使用博通乙太網路解決方案。

Next year, we expect all mega scale GPU deployments to be on ethernet. We expect the strength to need to continue. And because of that, we now expect networking revenue to grow 40% year on year compared to our prior guidance of over 35% growth.

明年，我們預計所有超大規模 GPU 部署都將在乙太網路上進行。我們預計這種力量需要持續下去。正因為如此，我們現在預計網路收入將年增 40%，而我們先前的預期成長超過 35%。

Moving to wireless, Q2 wireless revenue of $1.6 billion grew 2% year on year was seasonally down 19% quarter on quarter and represents 22% of semiconductor revenue. And in fiscal '24, helped by content increases, we reiterate our previous guidance for wireless revenue to be in essentially flat year on year. This trend is wholly consistent with our continued engagement with our North American customer, which is deep, strategic, and multi-year and represents all of our wireless business.

轉向無線領域，第二季無線營收為 16 億美元，年成長 2%，季減 19%，佔半導體營收的 22%。在 24 財年，在內容增加的幫助下，我們重申了先前對無線收入同比基本持平的指導。這一趨勢與我們與北美客戶的持續合作完全一致，這種合作是深入的、策略性的、多年的，代表了我們所有的無線業務。

Next, our Q2 server storage connectivity revenue was $824 million or 11% of semiconductor revenue, down 27% year on year. We believe, though, Q2 was the bottom in service storage. And based on updated demand forecast and bookings, we expect a modest recovery in the second half of the year. And accordingly, we forecast fiscal '24 server storage revenue to decline around the 20% range year on year.

接下來，我們第二季的伺服器儲存連線收入為 8.24 億美元，佔半導體營收的 11%，年減 27%。不過，我們認為第二季是服務儲存的底部。根據最新的需求預測和預訂情況，我們預計下半年將出現溫和復甦。因此，我們預測 24 財年伺服器儲存收入將年減 20% 左右。

Moving on to broadband, Q2 revenue declined 39% year on year to $730 million and represented 10% of semiconductor revenue. Broadband remains weak on a continued pause in telco and service provider spending. We expect Broadcom to bottom in the second half of the year with a recovery in 2025. Accordingly, we are revising our outlook for fiscal '24 broadband revenue to be down high 30s year on year from our prior guidance for decline of just over 30% year on year.

說到寬頻，第二季營收年減 39% 至 7.3 億美元，佔半導體營收的 10%。由於電信和服務供應商支出持續暫停，寬頻仍然疲軟。我們預計博通將在下半年觸底，並在 2025 年復甦。

Finally, Q2 industrial resale of [$234 million] declined 10% year on year. And for fiscal '24, we now expect industrial resales to be down double digits percentage year on year, compared to our prior guidance for high single digit decline.

最後，第二季工業轉售 [2.34 億美元] 年減 10%。對於 24 財年，我們現在預計工業轉售將同比下降兩位數百分比，而我們先前的指導為高個位數下降。

So to sum it all up, here's what we are seeing. For fiscal '24, we expect revenue from AI to be much stronger at over $11 billion. Non-AI semiconductor revenue has bottomed in Q2 and is likely to recover modestly for the second half of fiscal '24. on infrastructure software, we're making very strong progress in integrating VMware and accelerating its growth. Pulling all these three key factors together, we are raising our fiscal 24 revenue guidance to $51 billion.

總而言之，這就是我們所看到的。對於 24 財年，我們預計人工智慧帶來的收入將強勁得多，超過 110 億美元。非人工智慧半導體收入已在第二季觸底，並可能在 24 財年下半年小幅復甦。在基礎設施軟體方面，我們在整合VMware 和加速其發展方面取得了巨大進展。綜合考慮所有這三個關鍵因素，我們將 24 財年的收入指引提高至 510 億美元。

And with that, let me turn the call over to Kirsten.

接下來，讓我把電話轉給克斯汀。

Thank you, Hock. Let me now provide additional detail on our Q2 financial performance, which included a full quarter of contribution from VMware.

謝謝你，霍克。現在讓我提供有關我們第二季度財務業績的更多詳細信息，其中包括 VMware 整個季度的貢獻。

Consolidated revenue was $12.5 billion for the quarter, up 43% from a year ago. Excluding the contribution from VMware, Q2 revenue increased 12% year on year. Gross margins were 76.2% of revenue in the quarter. Operating expenses were $2.4 billion, and R&D was $1.5 billion, both up year on year, primarily due to the consolidation of VMware.

該季度綜合營收為 125 億美元，比去年同期成長 43%。剔除VMware的貢獻，第二季營收年增12%。該季度毛利率佔營收的 76.2%。營運費用為 24 億美元，研發費用為 15 億美元，均較去年同期成長，主要得益於 VMware 的整合。

Q2 operating income was $7.1 billion and was up 32% from a year ago with operating margin at 57% of revenue. Excluding transition costs, operating profit of $7.4 billion was up 36% from a year ago with operating margin of 59% of revenue. Adjusted EBITDA was %7.4 billion or 60% of revenue. This figure excludes $149 million of depreciation.

第二季營業收入為 71 億美元，比去年同期成長 32%，營業利潤率為營收的 57%。不計轉型成本，營業利潤為 74 億美元，比去年同期成長 36%，營業利益率為營收的 59%。調整後 EBITDA 為 74 億%，佔營收的 60%。該數字不包括 1.49 億美元的折舊。

Now a review of the P&L for our two segments. Starting with semiconductors. Revenue for our semiconductor solutions segment was $7.2 billion and represented 58% of total revenue in the quarter. This was up 6% year on year. Gross margins for our semiconductor solutions segment were approximately 67%, down 370 basis points year on year, driven primarily by a higher mix of custom AI accelerators. Operating expenses increased 4% year on year to $868 million on increased investment in R&D, resulting in semiconductor operating margins of 55%.

現在回顧我們兩個部門的損益表。從半導體開始。我們的半導體解決方案部門的收入為 72 億美元，佔本季總收入的 58%。這一數字年增 6%。我們的半導體解決方案部門的毛利率約為 67%，較去年同期下降 370 個基點，這主要是由於客製化 AI 加速器組合的增加所致。由於研發投資增加，營運費用年增 4% 至 8.68 億美元，導致半導體營運利潤率達到 55%。

Now moving on to Infrastructure Software. Revenue for infrastructure software was $5.3 billion, up 170% year on year, primarily due to the contribution of VMware and represented 42% of revenue. Gross margin for infrastructure software were 88% in the quarter, and operating expenses were $1.5 billion in the quarter, resulting in Infrastructure software operating margin of 60%. Excluding transition acquisition costs, operating margin was 64%.

現在轉向基礎設施軟體。基礎設施軟體營收為53億美元，年增170%，主要得益於VMware的貢獻，佔營收的42%。本季基礎設施軟體毛利率為 88%，本季營運費用為 15 億美元，基礎設施軟體營運利潤率為 60%。不計轉型收購成本，營業利益率為 64%。

Now moving on to cash flow. Free cash flow in the quarter was $4.4 billion and represented 36% of revenue. Excluding cash used for restructuring and integration of $830 million, free cash flows of $5.3 billion were up 18% year on year and represented 42% of revenue. Free cash flow as a percentage of revenue has declined from 2023 due to higher cash interest expense from debt related to the VMware acquisition, and higher cash taxes due to a higher mix of US income, and the delay in the reenactment of Section 174. We spent $132 million on capital expenditures.

現在轉向現金流。本季自由現金流為 44 億美元，佔營收的 36%。不包括用於重組和整合的現金8.3億美元，自由現金流為53億美元，年增18%，佔營收的42%。自由現金流佔收入的百分比較 2023 年有所下降，原因是與 VMware 收購相關的債務帶來的現金利息支出增加、美國收入組合增加導致現金稅增加以及第 174 條重新制定的延遲。為1.32 億美元。

Day sales outstanding were 40 days in the second quarter, consistent with 41 days in the first quarter. We ended the second quarter with inventory of $1.8 billion, down 4% sequentially. We continue to remain disciplined on how we manage inventory across our ecosystem. We ended the second quarter with $9.8 billion of cash and $74 billion of gross debt. The weighted average coupon rate and years to maturity of our $48 billion in fixed rate debt is 3.5% and 8.2 years, respectively.

第二季的每日銷售天數為 40 天，與第一季的 41 天一致。第二季結束時，我們的庫存為 18 億美元，比上一季下降 4%。我們將繼續嚴格遵守整個生態系統的庫存管理方式。第二季結束時，我們擁有 98 億美元的現金和 740 億美元的總債務。我們 480 億美元固定利率債務的加權平均票面利率和到期年限分別為 3.5% 和 8.2 年。

The weighted average coupon rate and years to maturity of our $28 billion in floating rate debt is 6.6% and 2.8 years, respectively. During the quarter, we repaid $2 billion of our floating rate debt, and we intend to maintain this repayment of debt throughout fiscal 2024.

我們 280 億美元浮動利率債務的加權平均票面利率和到期年限分別為 6.6% 和 2.8 年。本季度，我們償還了 20 億美元的浮動利率債務，我們打算在整個 2024 財年維持這種債務償還狀態。

Turning to capital allocation. In the quarter, we paid stockholders $2.4 billion of cash dividends based on a quarterly common stock cash dividend of $5.25 per share. In Q2, non-GAAP diluted share count was 492 million, as the 54 million shares issued for the VMware acquisition were fully weighted in the second quarter. We paid $1.5 billion in withholding taxes due on vesting of employee equity resulting in the elimination of 1.2 million AVGO shares.

轉向資本配置。本季度，我們以每股 5.25 美元的季度普通股現金股利向股東支付了 24 億美元的現金股利。第二季度，非 GAAP 稀釋後股票數量為 4.92 億股，因為收購 VMware 發行的 5,400 萬股股票在第二季已完全加權。我們因員工股權歸屬而繳納了 15 億美元的預扣稅，導致 120 萬股 A​​VGO 股票被註銷。

Today, we are announcing a 10 for 1 forward stock split of Broadcom's common stock to make ownership of Broadcom stock more accessible to investors and to employees. Our stockholders of record after the close of market on July 11, 2024, will receive an additional nine shares of common stock after the close of market on July 12, with trading on a split adjusted basis expected to commence at market open on July 15, 2024. In Q3, reflecting a post split basis, we expect share count to be approximately 4.92 billion shares.

今天，我們宣布對 Broadcom 普通股進行 10 比 1 的遠期股票分割，以使投資者和員工更容易獲得 Broadcom 股票的所有權。我們在 2024 年 7 月 11 日收盤後登記的股東將在 7 月 12 日收盤後額外獲得 9 股普通股，預計在 7 月 15 日開盤時開始按分拆調整進行交易， 2024 年。季度，反映分拆後的基礎上，我們預期股數約為49.2 億股。

Now on to guidancein. We are raising our guidance for fiscal year 2024 consolidated revenue to $51 billion and adjusted EBITDA to 61%. For modeling purposes, please keep in mind that GAAP net income and cash flows in fiscal year 2024 are impacted by restructuring and integration related cash costs due to the VMware acquisition.

現在開始指導。我們將 2024 財年合併收入指引提高至 510 億美元，並將調整後的 EBITDA 提高至 61%。出於建模目的，請記住，2024 財年的 GAAP 淨利潤和現金流量受到 VMware 收購導致的重組和整合相關現金成本的影響。

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

我準備好的發言就到此結束。接線員，請撥打電話詢問問題。

(Operator Instructions)

（操作員說明）

Vivek Arya, Bank of America.

維韋克·阿里亞 (Vivek Arya)，美國銀行。

Thanks for taking my question. Hock, I would appreciate your perspective on the emerging competition between Broadcom and Nvidia across both accelerators and ethernet switching. So on the accelerator side, they are going to launch their Balckwell product that many of the same customers that you have a very large position in the custom compute.

感謝您提出我的問題。 Hock，我很欣賞您對 Broadcom 和 Nvidia 在加速器和乙太網路交換方面新興競爭的看法。因此，在加速器方面，他們將推出 Balckwell 產品，許多與您在客製化運算領域擁有很大地位的客戶相同。

So I'm curious how you think customers are going to do that allocation decision, just broadly what the visibility is? And then, I think a part B of that is as they launch their Spectrum-X Ethernet switch, do you think that poses increasing competition for Broadcom in the ethernet switching side in AI for next year? Thank you.

所以我很好奇您認為客戶將如何做出分配決策，大致可見性是什麼？然後，我認為其中的 B 部分是，當他們推出 Spectrum-X 乙太網路交換器時，您認為這是否會為博通明年在人工智慧領域的乙太網路交換方面帶來越來越激烈的競爭？謝謝。

Very interesting question, Vivek. On AI accelerators, I think were operating on a different, to start with, scale much a different model. At the GPUs, which are the AI accelerator of choice on merchant environment is something that is extremely powerful as a model, and it's something that Nvidia operate in a very, very effective manner. We don't even think about competing against them in that space.

非常有趣的問題，維維克。在人工智慧加速器上，我認為我們首先在不同的模型上運行，規模也不同。 GPU 是商業環境中選擇的人工智慧加速器，它是一種非常強大的模型，並且 Nvidia 以非常非常有效的方式運作。我們甚至沒有想過在這個領域與他們競爭。

Nonetheless, that's where they're very good at and we know where we stand with respect to that. What we do for very selected or selective hyperscalers is if they have the scale and the skills to try to create silicon solutions, which are AI accelerators to do particular very complex AI workloads, we're happy to use our IP portfolio to create those custom AI accelerators. So I do not see them as truly competing against each other, and far from me for me to say, I'm trying to position myself to be a competitor on basically GPUs in this market. We're not, we are not competitors to them, we don't trying to be either.

儘管如此，這就是他們非常擅長的地方，我們知道我們在這方面的立場。我們為經過精心挑選或選擇性的超大規模企業所做的是，如果他們有規模和技能來嘗試創建晶片解決方案，這些解決方案是用於執行特定的非常複雜的人工智慧工作負載的人工智慧加速器，我們很高興使用我們的IP 產品組合來創建這些客製化的人工智慧加速器。因此，我並不認為它們是真正的相互競爭，而且我也不能這麼說，我正試圖將自己定位為這個市場上 GPU 的競爭對手。我們不是，我們不是他們的競爭對手，我們也不想成為他們的競爭對手。

Now on networking, maybe that's different. But again, the people may be approaching, they maybe approaching it from different angle we are. We are, as I indicated, all along, very deep in ethernet as we've been doing ethernet for over 25 years, ethernet networking. And we've gone through a lot of market transitions, and we have captured a lot of market transitions from cloud scale, networking to routing, and now AI. So it's a natural extension for us to go into AI.

現在在網路上，也許情況有所不同。但同樣，人們可能正在接近它，他們可能從與我們不同的角度來接近它。正如我所指出的，我們一直在乙太網路領域非常深入，因為我們在乙太網路、乙太網路領域已經有超過 25 年的歷史了。我們經歷了許多市場轉型，我們已經抓住了從雲端規模、網路到路由，以及現在的人工智慧的許多市場轉型。因此，我們進入人工智慧領域是很自然的延伸。

We also recognize that being the AI compute engine of choice in merchant -- in the ecosystem, which is GPUs, that they are trying to create a platform that is probably end to end very integrated. We take an approach that we don't do those GPUs, but we enable the GPUs to work very well. So if anything else, we supplement and hopefully complement those GPUs in with have customers who are building bigger and bigger GPU clusters.

我們也意識到，作為生態系統中商家選擇的人工智慧運算引擎，即 GPU，他們正在嘗試創建一個可能端到端高度整合的平台。我們採取的方法是，我們不做那些 GPU，但我們讓 GPU 能夠很好地工作。因此，如果有什麼不同的話，我們會補充並希望與正在建立越來越大的 GPU 叢集的客戶補充這些 GPU。

Thank you.

謝謝。

Ross Seymore, Deutsche Bank.

羅斯·西莫爾，德意志銀行。

Hi, guys. Thanks for letting me ask the question. I wanted to stick on the AI theme, Hock. The strong growth that you had in the quarter, the 280% year over year, could you delineate a little bit between if that's the compute offload side versus the connectivity side? And then, as you think about the growth for the full year, how are those split in that realm as well?

嗨，大家好。謝謝你讓我問這個問題。我想堅持人工智慧主題，霍克。本季實現了強勁成長，年增 280%，您能否簡單描述一下計算卸載方面與連接方面之間的關係嗎？然後，當您考慮全年的成長時，這些領域的成長情況如何？

Are they kind of going hand-in-hand or is one side growing significantly faster than the other, especially with the I guess you said the next-generation accelerators are now going to be Broadcom as well?

它們是齊頭並進還是一側的增長速度明顯快於另一側，尤其是我猜你說下一代加速器現在也將是博通的？

To answer your question, on the mix, you're right, it is something we don't really predict very well know, understand completely except in hindsight, because it is tied to some extent to the cadence of deployments of when they put in the AI accelerators versus when they put in the infrastructure that puts it together, the networking. And we don't really quite understand 100%, all we know it used to be 80% accelerators, 20% networking. It is now running closer to one third -- two third accelerators, one third networking, and we're probably head towards 60-40 by the close of the year.

為了回答你的問題，關於混合，你是對的，這是我們並沒有真正預測清楚、完全理解的事情，除非事後諸葛亮，因為它在某種程度上與部署的節奏有關。其組合在一起的基礎設施（網路）。我們並不能真正理解 100%，我們所知道的是過去 80% 是加速器，20% 是網路。現在它的運作接近三分之一——三分之二是加速器，三分之一是網絡，到今年年底我們可能會朝著 60-40 的方向發展。

Thank you.

謝謝。

Stacy Rasgon, Bernstein.

史黛西·拉斯岡，伯恩斯坦。

Hi, guys. Thanks for taking my question. I wanted to ask about the $11 billion AI guide. With the $11.6 billion, even if you didn't grow AI from the current level in the second half, and it feels to me like you're not suggesting that -- it feels to me like you think it'd be going, so why wouldn't that AI number be a lot more than $11.6 billion? Feels like it ought to be or am I missing something?

嗨，大家好。感謝您提出我的問題。我想問一下價值 110 億美元的人工智慧指南。有了 116 億美元，即使下半年你沒有從目前的水平發展人工智慧，我覺得你並不是在暗示——我覺得你認為它會發展，所以為什麼AI 的數字不會遠高於116 億美元呢？感覺應該是這樣還是我錯過了什麼？

Because I gather just over eight over $11 billion, say it could be, what do you think it is?

因為我收集了 110 億美元中的 8 個多一點，如果說可能的話，你認為它是什麼？

It's the quarterly shipments get sometimes very lumpy. And it depends on rate of deployment, depend a lot of things. So you may be right, you may estimate it better than I do. But the general trend trajectory is it's getting better.

每季的出貨量有時會變得非常不穩定。這取決於部署速度，取決於許多因素。所以你可能是對的，你可能比我估計得更好。但總的趨勢軌跡是越來越好。

Okay. So I guess, again, how do I -- are you just suggesting that that more than $11 billion is sort of like the worst it could be, because that would just be flat with the current levels, but you're also suggesting that things are getting better into the back half?

好的。所以我想，我該怎麼做——你只是建議超過 110 億美元有點像最糟糕的情況，因為這將與當前水平持平，但你也建議事情後半場的情況變得更好了嗎？

Correct.

正確的。

Okay. So I guess we just take that that's a very -- if I'm reading it wrong with, that's just a very conservative number.

好的。所以我想我們只是認為這是一個非常——如果我理解錯誤的話，那隻是一個非常保守的數字。

That's the best forecast I have at this point, Stacy.

這是我目前最好的預測，史黛西。

Okay. All right, Hock. Thank you, I appreciate it.

好的。好吧，霍克。謝謝你，我很感激。

Thank you.

謝謝。

Harlan Sur, JPMorgan.

哈蘭‧蘇爾，摩根大通。

Good afternoon. Thanks for taking my question. Hock, on cloud and AI networking silicon, good to see that the networking mix is steadily increasing. Like clockwork, the dot-com team has been driving a consistent two-year cadence rate of new product introductions, Trident, and Tomahawk, Jericho family of switching and routing products for the past seven generations. You layer on top of that. your GPU customers are accelerating their cadence of new product introductions and deployments of their products.

午安.感謝您提出我的問題。 Hock，在雲端和人工智慧網路晶片方面，很高興看到網路組合正在穩步增長。就像發條一樣，網路團隊在過去七代中一直以兩年一次的節奏推出新產品，Trident、Tomahawk、Jericho 系列交換和路由產品。你在上面分層。您的 GPU 客戶正在加快新產品推出和產品部署的節奏。

So is this also driving faster adoption curve for your latest Tomahawk and Jericho products? And then, maybe just as importantly, like clockwork, it's been two years since you've introduced Tomahawk 5 product introduction, right, which if I look back historically means you have silicon and are getting ready to introduce your next-generation [three nanometer] Tomahawk 6 products, which would, I think, puts you two to three years ahead of your public competitors. Can you just give us an update there?

那麼，這是否也會推動您最新的 Tomahawk 和 Jericho 產品更快的採用曲線？然後，也許同樣重要的是，就像發條一樣，自從您推出戰斧 5 產品介紹以來已經兩年了，對吧，如果我回顧歷史，這意味著您擁有矽並準備推出下一代 [三納米] Tomahawk 6 產品，我認為這將使您領先於您的公開競爭對手兩到三年。您能給我們更新一下嗎？

Harlan, your pretty insightful. Yes, we launched Tomahawk 5 in '23. So you're right by late '25, the time we should be coming out with Tomahawk 6, which is the 100 terabit switch. Yes.

哈倫，你很有洞察力。是的，我們在 23 年推出了 Tomahawk 5。所以你說的對，到 25 年底，我們應該會推出 Tomahawk 6，即 100 太比特交換器。是的。

And is this acceleration of Cadence buyer GPU and CPU partners? Is that's also what's kind of driving the strong growth in the networking products?

而這個加速是Cadence買家GPU和CPU合作夥伴的嗎？這也是推動網路產品強勁成長的原因嗎？

Well, you know what, sometimes you have to let things take its time. But is two-year cadence, so we are right on. Late 2023, once when we showed it out to Tomahawk 5, adoption. You're correct with AI has been tremendous because it ties in with the needs for very large bandwidth in the networking -- in the fabric for on AI clusters, AI data centers. But regardless, we have always targeted the Tomahawk 6 after then, which then we should put it into late '25.

嗯，你知道嗎，有時候你必須讓事情慢慢來。但節奏是兩年，所以我們是對的。 2023 年末，有一次我們向戰斧 5 展示了它，並被採用。你說得對，人工智慧的影響是巨大的，因為它與網路中對超大頻寬的需求有關——在人工智慧叢集、人工智慧資料中心的結構中。但無論如何，在那之後我們一直以戰斧 6 為目標，然後我們應該把它推遲到 25 年末。

Okay. Thank you, Hock.

好的。謝謝你，霍克。

Ben Reitzes, Melius.

本‧雷茨，梅利厄斯。

Hey, thanks a lot and congrats on the quarter and guide. Hock, I wanted to talk a little bit more about VMware. Just wanted to clarify if it is indeed going better than expectations, how would you characterize know the customer willingness to move to subscription? And also, just a little more color on cloud foundation. You've cut the price there and are you seeing that beat expectations? Thanks a lot.

嘿，非常感謝並祝賀本季和指南。 Hock，我想多談談 VMware。只是想澄清一下，如果情況確實比預期好，您如何描述客戶轉向訂閱的意願？而且，在雲粉底上再多一點顏色。你們已經降低了那裡的價格，你們認為這超出了預期嗎？多謝。

Thanks and thanks for your kind regards on the quarter. But it's go -- as far as VMware is concerned, we're making good progress. The journey is not over by any means, but it's pretty much, very much to expectation. Moving to subscription, in VMware, we're very slow compared to I mean, a lot of other guys, Microsoft Salesforce, Oracle, we've really been pretty much in subscription. So VMware is late in that process. But when trying to make up for it by offering it and offering it very, very compelling manner, because subscription is the right thing to do, right?

感謝您對本季的親切問候。但它已經過去了——就 VMware 而言，我們正在取得良好的進展。旅程無論如何還沒結束，但已經非常非常符合預期了。轉向訂閱，在 VMware，我們的速度非常慢，我的意思是，與許多其他公司（Microsoft Salesforce、Oracle）相比，我們實際上已經基本採用訂閱了。因此，VMware 在這過程中起步較晚。但是當試圖通過提供它並以非常非常引人注目的方式提供它來彌補它時，因為訂閱是正確的事情，對吧？

it is a situation where you put out your product offering, and you update it, patch it, but update it feature wise, everything, its capabilities. On a continual basis, almost like getting your news on ongoing basis, subscription online versus getting it in a printer manner once a week, that's how I compare perpetual the subscription. So it is very interesting for people who want to can get on. And so that's no surprise we are getting -- they are getting on very well.

在這種情況下，你推出了你的產品，然後更新它，修補它，但更新它的功能，一切，它的功能。在持續的基礎上，幾乎就像持續獲取新聞一樣，在線訂閱與每週一次以打印機方式獲取新聞一樣，這就是我比較永久訂閱的方式。所以對於想要上手的人來說這是非常有趣的。所以我們得到的結果並不奇怪——他們相處得很好。

The big selling point we have, as I indicated, is the fact that we're not just trying to keep customers kind of stuck just server or compute virtualization. That's a great product, great technology, but has been out for 20 years. Based on what we are offering now at a very compelling price point, compelling been very attractive price point, the whole stack, software stack to use vSphere and his basic fundamental technology to virtualize networking storage operation and management, the entire data center, and create this cell service private cloud.

正如我所指出的，我們的一大賣點是我們不僅僅試圖讓客戶陷入伺服器或計算虛擬化的困境。這是一個偉大的產品，偉大的技術，但已經問世 20 年了。基於我們現在以非常有吸引力的價格點提供的產品，令人信服的是非常有吸引力的價格點，整個堆棧，軟體堆疊使用vSphere及其基本技術來虛擬化網路儲存操作和管理，整個數據中心，並創建這個蜂窩服務私有雲。

And Thanks for saying it, you're right, we have priced it down to the point where it's comparable. We've just compute virtualization. So yes, that's getting a lot of interest, a lot of attention from the customers we have signed up, who would like to deploy -- the ability to deploy private cloud -- their own private cloud on-prem. That is a nice complement, maybe even alternative or hybrid to public cloud. That's the selling point. And we're getting a lot of interest from our customers in doing that.

謝謝你這麼說，你是對的，我們已經把它的價格降到了可比的程度。我們剛剛計算了虛擬化。所以，是的，我們已經簽約的客戶對此產生了極大的興趣和關注，他們想要部署——部署私有雲的能力——他們自己的本地私有雲。這是一個很好的補充，甚至可以替代或混合公有雲。這就是賣點。我們的客戶對此非常感興趣。

Great. And then it's on track for bill by the fourth quarter still, which is reiterated.

偉大的。然後它仍有望在第四季度之前收到賬單，這一點得到了重申。

Well, I didn't give a specific timeframe, did I? But it's on track, as we see this product process growing towards $4 billion quarter.

嗯，我沒有給出具體的時間，對嗎？但它正在步入正軌，我們看到該產品流程將成長至每季 40 億美元。

Okay. Thanks a lot, Hock.

好的。非常感謝，霍克。

Thanks.

謝謝。

Toshiya Hari, Goldman Sachs.

Toshiya Hari，高盛。

Hi. Thank you so much for taking the question. I guess kind of a follow-up to the previous question on your software business. Hock, you seem to have pretty good visibility into hitting that $4 billion run rate over the medium term. Perhaps you also talked about your operating margins in that business converging to classic Broadcom levels.

你好。非常感謝您提出這個問題。我想這是對您的軟體業務的上一個問題的後續。 Hock，您似乎對中期內實現 40 億美元的運行率有很好的預見性。也許您也談到了該業務的營業利潤率已接近博通的經典水平。

I know the integration is not done and you're still kind of in debt paydown mode. But how should we think about your growth strategy beyond VMware? Where do you think you have enough drivers both on the semiconductor side and the software side to continue to drive growth? Or is M&A still an option beyond VMware? Thank you.

我知道整合尚未完成，您仍處於債務償還模式。但我們該如何考慮您在 VMware 之外的成長策略呢？您認為半導體方面和軟體方面有足夠的驅動力來繼續推動成長嗎？或者併購仍然是 VMware 以外的選項嗎？謝謝。

Interesting question. You're right, as I indicated in my remarks, even without the contribution from VMware this past quarter, where we have AI am helping us, but we have known non-AI semiconductors sort of bottoming out, we're able to show 12% organic growth year on year. So almost have to say, so do we need to rush to buy another company? Answer is no. But all options are always open because we're trying to create the best value for shareholders who have entrusted us with the capital to do that.

有趣的問題。正如我在演講中指出的那樣，即使沒有 VMware 上個季度的貢獻，我們也有人工智慧在幫助我們，但我們知道非人工智慧半導體正在觸底反彈，我們能夠展示 12同比有機成長百分比。那麼幾乎不得不說，那麼我們是否需要急於收購另一家公司呢？答案是否定的。但所有選擇始終是開放的，因為我們正在努力為委託我們提供資金的股東創造最佳價值。

So I would not discount that our alternative because our strategy, our long-term model has always been to grow through a combination of our acquisition, but also on the assets we acquire to really improve, invest, and operate them better to show organic growth as well. But again, organic growth often enough is determined very much by how fast your market would grow. So we do look towards acquisitions now and then.

因此，我不會低估我們的選擇，因為我們的策略、我們的長期模式一直是透過收購相結合來實現成長，而且我們收購的資產也能夠真正改善、投資和更好地運營它們，以顯示有機增長以及。但同樣，有機成長通常很大程度取決於市場成長的速度。因此，我們確實時不時地尋求收購。

Great, thank you.

太好了謝謝。

Blayne Curtis, Jefferies.

布萊恩·柯蒂斯，杰弗里斯。

Hey, thanks for taking my question. And I wanted to ask you, Hock, on the networking business kind of ex AI. Obviously, I think there's an inventory correction, the whole industry is seeing. But just kind of curious, I don't think you mentioned that it was at a bottom. So just perspective, I think, it's down about 60% year over year. Is that business finding a bottom? I know you said overall whole semi business should -- non AI should see recovery. Are you expecting there and any perspective on just customer inventory levels in that segment?

嘿，謝謝你回答我的問題。霍克，我想問你有關前人工智慧的網路業務的問題。顯然，我認為整個行業都看到了庫存調整。但只是有點好奇，我認為你沒有提到它處於底部。因此，我認為，僅從角度來看，它比去年同期下降了約 60%。該業務是否已見底？我知道你說過整個半企業應該——非人工智慧應該看到復甦。您是否對該細分市場的客戶庫存水準有任何期望和看法？

We see ir behaving -- I didn't particularly call it out obviously because more than anything else, I kind of like linked very much to server storage non-AI that is. And we call server storage as at the bottom Q2 and we call it to recover modestly second half of the year. We see the same thing in networking, which is a combination of enterprise networking as well as the hyperscalers who run the traditional workloads on those, though it's hard to figure out sometimes, but it is. So we see the same trajectory as we are calling out on server storage.

我們看到了他們的行為——我並沒有特別明確地指出這一點，因為最重要的是，我非常喜歡與非人工智慧的伺服器儲存聯繫起來。我們將伺服器儲存稱為第二季的底部，並將其稱為下半年的溫和復甦。我們在網路中看到了同樣的事情，它是企業網路以及在這些網路上運行傳統工作負載的超大規模企業的組合，儘管有時很難弄清楚，但事實確實如此。因此，我們看到了與我們在伺服器儲存上呼籲的相同的軌跡。

Okay, thank you.

好的謝謝。

Timothy Arcuri, UBS.

提摩西‧阿庫裡，瑞銀集團。

Hi, thanks. Hock, is there a way to sort of map GPU demand back to your AI networking opportunity? I think I heard you say in the past that and $10 billion GPU compute, you need to spend another $10 billion on other infrastructure, most of which is networking. So I so I'm just kind of wondering if when you see these big GPU numbers, is there sort of a rule of thumb that you use to map it back to what the opportunity will be for you? Thanks.

你好謝謝。 Hock，有沒有一種方法可以將 GPU 需求對應回您的 AI 網路機會？我想我過去聽你說過，除了 100 億美元的 GPU 運算之外，你還需要在其他基礎設施上再花費 100 億美元，其中大部分是網路。所以我只是想知道，當您看到這些巨大的 GPU 數字時，您是否可以使用某種經驗法則將其映射回給您帶來的機會？謝謝。

There is, but it's so complex. I stop creating such a model, I am serious. But there is, because one would say that, for everything -- you want to say for every billion spend on GPU, you probably would spend probably on networking. And if you include the optical interconnects as part of it, though, we are not totally in that market, except for the components, the DSPs, lasers, pin diodes, id they go into those, high-bandwidth optical connect, but if you just take optical connect in totality, switching, all the networking components that goes into attaches itself to clustering a bunch of GPUs, you probably would say that about 25% of the value of the GPU goes to networking, the rest of networking, Not entirely all of it is mine available market. I don't do the optical connect, but I do the few components that are bound in it.

有的，但是太複雜了。我不再創建這樣的模型，我是認真的。但確實存在，因為有人會說，對於一切——你想說的是，在 GPU 上的每十億支出，你可能會在網路上花費。但是，如果您將光學互連作為其中的一部分，那麼我們並不完全涉足該市場，除了組件、DSP、雷射、pin 二極管，它們都屬於高頻寬光學連接，但如果您就整體而言，光連接、交換、所有連接到集群的GPU 的網絡組件，您可能會說GPU 的價值的25% 左右用於網絡，其餘的網絡，不完全是所有這些都是我的可用市場。我不做光學連接，但我做其中綁定的幾個組件。

But roughly, the simple way to look at it is probably about 25%, maybe 30% of all these infrastructure components is kind of attached to the GPU value point itself. But having said that, it's never one -- never that precise that deployment is the same way. So you may see the deployment of GPU or access -- purchase of GPU much earlier, and the networking comes later of them, sometimes less the other way around, which is why you're seeing the mix going on within my AI revenue mix, but typically you run towards that range over time.

但粗略地看，所有這些基礎設施組件中的 25%、30% 左右可能是與 GPU 價值點本身相關的。但話雖如此，部署方式從來都不是那麼精確。因此，您可能會看到 GPU 或訪問的部署 - GPU 的購買要早得多，而網路則要晚一些，有時相反，這就是為什麼您會看到我的人工智慧收入組合中發生的混合情況，但通常情況下，隨著時間的推移，你會趨向於這個範圍。

Perfect. Thank you so much.

完美的。太感謝了。

Thomas O'Malley, Barclays.

托馬斯·奧馬利，巴克萊銀行。

Hey, guys. Thanks for taking my question and nice results. But my question regards to the customeristic AI. I've talked you've had a long run here of a very successful business, particularly with one customer. If you look in the market today, you have a new entrant who's playing with different customers. And I know that you said historically, that's not really a direct customer to you.

大家好。感謝您提出我的問題並取得了不錯的結果。但我的問題是關於客戶至上的人工智慧。我說過，您在這裡的業務長期非常成功，尤其是在一位客戶方面。如果你看看今天的市場，你會發現一個新進業者正在與不同的客戶競爭。我知道您曾經說過，這並不是您真正的直接客戶。

But could you talk about what differentiates you from a new entrant in the market as of late? And then, there has been profitability questions around the sustainability of gross margins longer term. Can you talk about if you see any increased competition and if there's really areas that you would deem more or less defensible in your profile today, and if you would see that additional entrant, maybe attack any of those in the future?

但您能談談您與最近進入市場的新進者有何不同嗎？此外，還存在圍繞毛利率長期可持續性的獲利能力問題。您能否談談您是否看到競爭加劇，以及您今天的個人資料中是否確實存在您認為或多或少可以防禦的領域，以及您是否會看到額外的進入者，也許將來會攻擊其中任何一個？

Let me take the second part first, which is our AI -- customer AI accelerated business. It is a very profitable business. And let me put the scale -- look at -- examine from a model point of view. I mean, each of these AI accelerators, no different from a GPU. The way this we do -- this more large language models get run, computing that run on these accelerators, no one single accelerator, as you know, can run this large language models in multiple of them, no matter how big how powerful those accelerators.

我先講第二部分，就是我們的AI－客戶AI加速業務。這是一項非常有利可圖的業務。讓我從模型的角度來衡量一下。我的意思是，這些人工智慧加速器與 GPU 沒有什麼不同。我們這樣做的方式——運行更大的語言模型，在這些加速器上運行計算，正如你所知，沒有一個加速器可以在多個加速器中運行這個大型語言模型，無論這些加速器有多大、有多強大。

But also, the way the models are run there's a lot of memory -- access to memory requirements. So each of this accelerate that countries a large amount of catche memory, as you call it, what you guys probably know as HBM, high-bandwidth memories, specialized for AI accelerators or GPUs. So we are supplying both in our custom business. And the logic side of it, the way the compute function is on chips, the margin there are no different than the margin in any in -- most of -- any of our semiconductor silicon chip business.

而且，模型的運作方式需要大量記憶體——存取記憶體需求。因此，每一個加速都會產生大量的內存，你們可能稱之為 HBM，高頻寬內存，專門用於 AI 加速器或 GPU。因此，我們在客製化業務中同時提供這兩種產品。從邏輯方面來看，晶片上的運算功能的方式，其利潤與我們任何半導體矽晶片業務的利潤沒有什麼不同。

But when you attach to it a huge amount of memory, memory comes from a third-party. Now a few memory makers to make this specialized thing. We don't do margin stacking on that onw. So by-- almost by basic math would dilute the margin of these AI accelerators when you sell them with memory, which we do. It does push our revenue somewhat higher, but it is dilute the margin.

但是當你附加大量記憶體時，記憶體就來自第三方。現在有一些記憶體製造商專門生產這種東西。我們不會就此進行邊距堆疊。因此，當你將這些人工智慧加速器與記憶體一起出售時，幾乎透過基本數學計算，就會稀釋它們的利潤，而我們就是這樣做的。它確實使我們的收入有所提高，但它稀釋了利潤率。

But regardless, the spend, the R&D, the OpEx that goes to support this as a percent of the revenue, which is a higher revenue, so much less. So on an operating margin level, this is easily as profitable, if not more profitable, given the scale that each of those custom AI accelerator can go up to. It is even better than our normal operating margin scale. So that's the return investment that attracts and keeps us going at this game. And this is more than a game. It's a very difficult business. And to answer your first question, there's only one Broadcom period.

但無論如何，支出、研發、營運支出佔收入的百分比，這是一個更高的收入，所以少很多。因此，在營運利潤水準上，考慮到每個客製化人工智慧加速器可以達到的規模，這很容易實現盈利，甚至更高。這甚至比我們正常的營業利潤率還要好。這就是吸引我們並讓我們繼續玩這個遊戲的回報投資。這不僅僅是一場遊戲。這是一件非常困難的事。為了回答你的第一個問題，只有一個博通時期。

Thanks, Hock.

謝謝，霍克。

Karl Ackerman, BNP.

卡爾‧阿克曼，法國巴黎銀行。

Yes, thank you. Good afternoon. Hock, your networking switch portfolio with Tomahawk and Jericho chipsets allow hyperscalers to build clusters using either a switch scheduled or endpoint scheduled network. And that, of course, is unique among competitors. But as hyperscalers seek to deploy their own unique AI clusters, are you seeing a growing mix of white-box networking switch deployments? I asked because one of your custom silicon business continues to broaden, it would be helpful to better understand the growing mix of your $11 billion AI networking portfolio combined this year. Thank you.

是的，謝謝。午安. Hock，您的網路交換器產品組合採用 Tomahawk 和 Jericho 晶片組，允許超大規模企業使用交換器調度或端點調度網路建立叢集。當然，這在競爭對手中是獨一無二的。但隨著超大規模企業尋求部署自己獨特的人工智慧集群，您是否看到越來越多的白盒網路交換器部署組合？我之所以詢問，是因為你們的一項客製化晶片業務不斷擴大，因此更了解你們今年 110 億美元的人工智慧網路投資組合不斷增長的組合將很有幫助。謝謝。

Let me have Charlie address this question. He is the expert here.

讓我讓查理回答這個問題。他是這裡的專家。

Thank you, Hock. So on two quick things on this. One is the you're exactly right, that the portfolio we have, it's quite unique and providing that flexibility. And by the way, this is exactly why Hock in his statements earlier on mentioned that seven out of the top eight hyperscalers use our portfolio, and they use it specifically because it provides that flexibility.

謝謝你，霍克。關於這個問題有兩件事。一是你說得完全正確，我們擁有的產品組合非常獨特，並且提供了靈活性。順便說一句，這正是霍克在早些時候的聲明中提到的原因，前八名超大規模企業中有七家使用我們的產品組合，他們專門使用它，因為它提供了這種靈活性。

So whether you have an architecture that's based on an endpoint and you want to actually build your platform that way or you want that switching to happen in the fabric itself, that's why we have the full end-to-end portfolio. So that actually has been a proven differentiator for us.

因此，無論您擁有基於端點的架構，並且您希望以這種方式實際建立平台，還是希望在結構本身中進行切換，這就是我們擁有完整的端到端產品組合的原因。所以這對我們來說其實是一個經過驗證的差異化因素。

And then on top of that, we've been working, as you know, to provide a complete network operating system that's opened on top of that using Sonic and site, which has been deployed in many of the hyperscalers. And so the combination of the portfolio plus the stack really differentiates the solution that we can offer to these hyperscalers. And if they decide to build their own mix, their own accelerators or our custom or use standard products, whether it's from Broadcom or other, that platform, that portfolio of infrastructure switching gives you that full flexibility.

除此之外，如您所知，我們一直在努力提供一個完整的網路作業系統，該系統是在使用 Sonic 和網站的基礎上開放的，該系統已部署在許多超大規模企業中。因此，產品組合和堆疊的組合確實使我們可以為這些超大規模企業提供的解決方案與眾不同。如果他們決定建立自己的組合、自己的加速器或我們的定製或使用標準產品，無論是來自 Broadcom 還是其他平台，該基礎設施交換組合將為您提供充分的靈活性。

Thank you.

謝謝。

CJ Muse, Cantor Fitzgerald.

CJ 繆斯、坎托·費茲傑拉。

Yes, good afternoon.

是的，下午好。

Thank you for taking the question. I was hoping to ask two parts software question. So excluding real were your Brocade CA semantic business is now running $500 million higher for the last two quarters. So curious, is that the new sustainable run rate or were there one-time events in both January and April that we should be considering?

感謝您提出問題。我希望問兩部分軟體問題。因此，排除實際情況，您的 Brocade CA 語義業務在過去兩個季度的收入增長了 5 億美元。很好奇，是新的可持續運行率還是我們應該考慮一月和四月的一次性事件？

And then, the second question is, as you think about VMware cloud foundation adoption, are you seeing any sort of crowding out of spending like other software guys are saying is they repurpose their budgets to IT? Or is that business so less discretionary that it's just not an impact for you? Thanks so much.

然後，第二個問題是，當您考慮 VMware 雲端基礎採用時，您是否看到任何形式的支出擠出，就像其他軟體人員所說的那樣，他們是否將預算重新分配給了 IT？或者該業務的自由裁量權太低，以至於對您沒有影響？非常感謝。

Well, on the second one, I don't know about any crowding out to be honest. It's not -- what we are offering, obviously is not something that they would like to use themselves to be able to do themselves, which is they're already spending on building their own on-prem data centers. And typical approach, people take a -- lot of enterprises take historically contained today that most people do. A lot of people do is they have best of breed. What I mean was they create a data center that is compute as a separate category, best compute AI. And the often in our views vSphere for compute virtualization, due to improve productivity, but best-of-breed. And then you have best of breed on networking and best of breed on storage with a common management operations layer, which very often is also VMware, vRealize.

好吧，對於第二個，說實話，我不知道有什麼排擠。這不是——我們提供的，顯然不是他們想要用自己能夠做的事情，他們已經在花錢建造自己的本地資料中心。典型的方法是，人們採取一種——許多企業採取歷史上包含的今天大多數人所做的方法。很多人所做的就是他們擁有最好的品種。我的意思是他們創建了一個資料中心，該資料中心作為一個單獨的類別進行計算，最好的計算人工智慧。在我們看來，vSphere 經常用於計算虛擬化，因為可以提高生產力，而且是同類最佳。然後，您將擁有最佳的網路和最佳的存儲，以及通用的管理操作層，通常也是 VMware、vRealize。

And what we're trying to say is this mixed bag, and what they see is this mixed bag, best-of-breed data center very heterogenous is not driving -- it is lot of highly resilient on data center. I mean, you have a mixed bag, so it goes down. Where do you find -- where do you find quickly root cause? Everybody is pointing fingers at the other. So we've got a problem not very resilient and not necessarily secure between bare-metal in one side and software on the other side.

我們想說的是這個混合體，他們看到的是這個混合體，同類最佳的資料中心非常異質並沒有驅動——它是許多高度彈性的資料中心。我的意思是，你有一個混合包，所以它會下降。你在哪裡找到——你在哪裡可以快速找到根本原因？每個人都互相指責。因此，我們遇到的問題是彈性不強，一側的裸機和另一側的軟體之間不一定安全。

So it's a natural and thinking on a bunch of many CIOs, we talk to to say, hey, I want to create one common our platform as opposed to just best of breed of age. So that gets us into that. So it is a greenfield. That's not bad, they started from scratch. If it's a brownfield, that means they have existing data center trying to upgrade. It is -- sometimes that's more challenging for us to get that adoption.

因此，對於許多資訊長來說，這是一個自然而然的想法，我們會說，嘿，我想創建一個我們共同的平台，而不是最好的時代平台。這讓我們陷入困境。所以這是一片綠地。這還不錯，他們從頭開始。如果是棕地，則表示他們有現有的資料中心正在嘗試升級。有時，獲得這種採用對我們來說更具挑戰性。

So I'm not sure there's a crowding out here. Some competition, obviously on greenfield, where they can spend a budget on an entire platform versus best-of-breed. But on the existing data center where you're trying to upgrade, that's a trickier thing to do and it cuts the other way as well for us. That's how I see it.

所以我不確定這裡是否擁擠。一些競爭，顯然是在未開發的領域，他們可以將預算花在整個平台上，而不是最好的平台上。但在您嘗試升級的現有資料中心上，這是一件比較棘手的事情，而且對我們來說也有其他影響。我就是這麼看的。

So in that sense, the best answer is I don't think we are seeing a level of crowding out that is any -- that's very significant for me to mention. In terms of the revenue mix, Brocade is having a great field year so far and still chugging along. But what has sustained? Hell no, you know that. Brocade goes through cycles, like most enterprise purchases. So we're enjoying while it lasts.

因此，從這個意義上說，最好的答案是，我認為我們沒有看到任何程度的擠出——這對我來說非常重要。就收入組合而言，博科今年迄今表現出色，並且仍在穩步發展。但什麼持續了呢？不，你知道的。就像大多數企業採購一樣，博科也會經歷週期。所以我們正在享受它持續的時間。

Thank you.

謝謝。

Thanks,

謝謝，

William Stein, Truist Securities.

威廉斯坦，Truist 證券公司。

Great. Thanks for squeezing me in. Hock, congrats on yet another great quarter and strong outlook in AI. I also want to ask about something you mentioned with VMware. In your prepared remarks, you highlighted that you've eliminated a tremendous amount of channel conflict. I'm hoping you can linger on this a little bit and clarify maybe what you did, and specifically, also, what you did in the heritage Broadcom software business, where I think historically you've shied away from the channel and there was an idea that perhaps you'd reintroduce those products to the channel through a more unified approach using VMware's channel partners or resources? So any sort of clarification here, I think be helpful. Thank you.

偉大的。感謝您邀請我加入。我還想問一下您提到的有關 VMware 的事情。在您準備好的發言中，您強調您已經消除了大量的管道衝突。我希望你能在這個問題上停留一下，澄清一下你做了什麼，特別是，你在傳統的博通軟體業務中做了什麼，我認為歷史上你一直迴避這個管道，並且有一個是否認為您可以利用VMware 的通路夥伴或資源透過更統一的方法將這些產品重新引入通路？因此，我認為這裡的任何澄清都會有所幫助。謝謝。

Yes. Thank you. That's a great question. Yeah, VMware taught me a few things. They have 300,000 customers, 300,000, that's interest -- amazing. And we'll look at it, I know under CA, we took opposite position that less bring a less strategic guys and focus on it. I can do that in VMware, I approach it differently and we started.

是的。謝謝。這是一個很好的問題。是的，VMware 教會了我一些東西。他們有 30 萬個客戶，30 萬個，這就是興趣——太棒了。我們會看看它，我知道在 CA 的領導下，我們採取了相反的立場，即減少戰略性較低的人員並專注於它。我可以在 VMware 中做到這一點，我採用不同的方法，然後我們就開始了。

I started learn the value of a very strong bunch of partners they have, which are a network of distributors and something like 15,000 VARs, Value Added Resellers supported with this distributors. So we have doubled down and invested in this reseller network in a big way for VMware. It's a great move, I think about six months into the game, but we are seeing a lot more velocity out of it.

我開始了解他們擁有的一群非常強大的合作夥伴的價值，這些合作夥伴是一個分銷商網絡，以及由這些分銷商支持的 15,000 個 VAR（增值經銷商）。因此，我們加倍努力，對 VMware 的經銷商網路進行了大量投資。這是一個偉大的舉動，我認為遊戲進行了六個月，但我們看到它的速度要快得多。

Now this resellers, having said and tend to be very focused on a very long tail of that 300,000 customers. the largest 10,000 customers of the VMware are large enterprises, who tend -- they are very large enterprises. The largest banks, the largest health care companies, and their our view is one very peaceful service support engineering solutions from us. So we've created a direct approach supplemented choice where they need to.

現在，該經銷商表示，他們往往非常關注這 30 萬名客戶中的長尾客戶。 VMware 最大的 10,000 個客戶是大型企業，他們往往是非常大的企業。最大的銀行，最大的醫療保健公司，他們的觀點是我們提供的一個非常和平的服務支援工程解決方案。因此，我們創建了一種直接方法，在他們需要的地方補充選擇。

But on the long tail of 300,000 customers, they get a lot of services to from the resellers, value-added resellers in their way. So we now and strengthen that whole network of resellers so that they can go direct manage supported financially with distributors. And we don't try to challenges guys, unless the customers, both on the end of the day, the customer chose where they'd like to be supported. And we're -- we kind of simplifying this together with the number of skews that are.

但在 30 萬名客戶的長尾上，他們從經銷商、加值經銷商獲得了許多服務。因此，我們現在加強整個經銷商網絡，以便他們可以直接管理經銷商的財務支援。我們不會試圖挑戰其他人，除非客戶最終選擇了他們想要獲得支援的地方。我們將其與傾斜的數量一起簡化。

In the past, unlike what we're trying to do here, everybody's a -- you're talking a full range of partners, and everybody -- and whoever the make the biggest still gets the lowest -- the partner that makes the biggest deal gets the biggest discount, lowest price. And they are out there basically kind of creating a lot of channel chaos and conflict in the marketplace. Here, We don't -- the customers they have a way.

在過去，與我們在這裡嘗試做的不同，每個人都是——你說的是全方位的合作夥伴，每個人——無論誰賺得最大，仍然得到最低的——賺得最大的合作夥伴交易獲得最大折扣、最低價格。他們基本上在市場上造成了很多通路混亂和衝突。在這裡，我們不——客戶有辦法。

They can take it direct from VMware to the direct sales force or they can easily move to the resellers to get it that way. And as a third alternative which we offer if they chose not -- they want to run the applications on VMware and they want to run it efficiently on a full stack, they have a choice now of going to a hosted environment managed by a network of managed service providers, which we set up globally that will run the infrastructure, invest, and operate the infrastructure. And this enterprise customer run their workloads in and get it as a service, basically VMware as a service as certain alternative. And we have clear to make it very distinct and differentiated for our end user customers. They are available to all three is how they chose to consume our technology.

他們可以直接從 VMware 處交給直銷人員，也可以輕鬆地轉至經銷商以這種方式取得。作為我們提供的第三種替代方案（如果他們不選擇的話）——他們希望在VMware 上運行應用程式並且希望在完整的堆疊上高效地運行應用程序，他們現在可以選擇進入由網路管理的託管環境。該企業客戶運行其工作負載並將其作為服務獲取，基本上是將 VMware 作為服務作為某種替代方案。我們已經明確要讓我們的最終用戶客戶變得非常獨特和差異化。這三個人都可以使用它們，這就是他們選擇使用我們技術的方式。

Great. Thank you.

偉大的。謝謝。

Thank you. I would now like to hand the call over to Ji Yoo, Head of Investor Relations, for any closing remarks.

謝謝。現在我想將電話轉交給投資者關係主管 Ji Yoo，讓其發表結束語。

Thank you, Sharin. Broadcom currently plans to report its earnings for the third quarter of fiscal '24 after close of market on Thursday, September 5, 2024, a public webcast of Broadcom's earnings conference call will follow at 2:00 PM Pacific Time. That will conclude our earnings call today, and thank you all for joining. Operator, you may end the call.

謝謝你，沙林。博通目前計劃於 2024 年 9 月 5 日星期四收盤後公佈 24 財年第三季的收益，博通收益電話會議的公開網路直播將於太平洋時間下午 2:00 進行。我們今天的財報電話會議到此結束，感謝大家的加入。接線員，您可以結束通話了。

Thank you all for participating. This concludes today's program. You may now disconnect.

感謝大家的參與。今天的節目到此結束。您現在可以斷開連線。