买入：虽不及预期，但观点不变

EquitiesSemiconductors & Equipment Buy:Not as good aswehoped,but thesis unchanged United States ◆2QFY26resultsinline,but3QFY26guidancenotenoughforabeat and raise MAINTAIN BUY TARGET PRICE(USD)PREVIOUS TARGET(USD)600.00600.00SHARE PRICE(USD)UPSIDE/DOWNSIDE479.23+25.2%(as of03 Jun 2026) ◆Nosignificant increase in FY27 backlogwiththenarrativeshiftingtowardsFY28 momentum ◆MaintainBuywithanunchangedtarget priceof USD600 2QFY26inline,but3QFY26guidancenot enoughforabeat:Broadcom’s2QFY26revenue of USD22.2bnwasinline withguidance, our estimate andconsensusofUSD22bn.AI revenue of USD10.8bnwasalso largely inlinewithguidance, ourestimate and consensusofUSD10.7bn.3QFY26revenueguidance ofUSD29.4bnmodestlybeat consensus of USD28.3bnbutwasbelowour estimateof USD30.7bn.3QFY26 GM guidance of74% (down3%q-o-q)was inline withour estimateof74.4% but belowconsensusof75.1%. More importantly,3Q2FY26 AI revenueguidanceofUSD16.0bn was belowour estimateof USD19.1bn andnot enough tobeatconsensus of USD16.3bn,whileinfrastructure softwarerevenue guidanceofUSD8.9bnprovidedabiggerbeatversusour estimate andconsensus of USD7.4bnandUSD7.6bn, respectively. Unlikein theprevious quarter whenBroadcom hadaclearbeatdriven byAI networking, there was nobeat and raise onoverall AI revenuefromeither its ASIC or AI networking revenuethis time. No significantincrease in FY27 backlog,but upside potential remains:Broadcomremained bullishon its FY27 outlook,even though itdidnotsignificantly raise itsFY27order backlog beyond USD100bn,which it did last quarter (versusapreviousUSD73bn)mainly due toupside totheAI networking backlog.There were also no newincrementalASIC customerannouncements.We expectAnthropicand Open AItostartrampingupin FY26eandstill see upside potential to FY27eAI revenue as our FY26-27eestimatesofUSD60.0bnandUSD140.4bnremain6%and18%above consensus ofUSD56.5bnandUSD118.9bn, respectively. Frank Lee*Global Head of Tech Hardware & Semi ResearchThe Hongkong and Shanghai Banking Corporation Limitedfrank.lee@hsbc.com.hk+852 2996 6916 Broadcom also lookedtoshiftthe narrativetowardsmorebullishFY28 AI revenuemomentum,especially on back oftheSPV platformto deploy 20GW of computecapacity.Led by its recentUS36bnSPVdeal with Apollo,Broadcomisnow shiftingthenarrativeof incremental demand away from self-funded CSPcapexand cash flowgenerationtowardsinfrastructurescaling projects. Pulkit Aggarwal*AssociateBangalore * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/ qualified pursuant to FINRA regulations MaintainBuy andtarget priceofUSD600:Welowerour FY26e EPSestimateby1% to reflect the weaker guidance butkeepourFY27eEPS estimateunchanged.Wemaintain ourroundedtarget priceofUSD600,based onanunchangedtarget FY27ePE multiple of28xapplied to ourunchangedFY27e EPSestimateof USD21.45,implyingc25% upsidefrom the current share price. WemaintainourBuyrating. Webelieve the strong ASIC ramp-upand upside to AI networking revenue can helpBroadcom re-rate towards our target PEmultiple.See page 5 forkeydownsiderisks. Issuer of report:The Hongkong and ShanghaiBanking Corporation Limited Disclosures & DisclaimerThis report must be read with the disclosures and the analystcertifications in the Disclosure appendix, and with the Disclaimer, which forms part of it. View HSBC Global Investment Research at:https://www.research.hsbc.com Financials & valuation:Broadcom Inc Key takeaways fromthe2QFY26earnings call 2QFY26results ◆Revenue of USD22.2bn (up15%q-o-qandup48%y-o-y)wasinline withguidance ofUSD22.0bn,driven bystrength in AI semiconductor solutions◆Within semiconductor solutions,AI revenuewasUSD10.8bn, up 29% q-o-q◆60%of AIrevenue was driven by custom silicon,while40%was driven by networking◆Total semiconductor solutions revenuewasUSD15.0bn, up20% q-o-q◆Infrastructure software revenuewasUSD7.2bn,up6% q-o-q◆Non-GAAP gross margin of 77.1% wasup 12bp sequentially, in line with guidance◆Non-GAAP operating margin of 67.3% wasup86bp sequentially◆Non-GAAP EPSwasUSD2.44,up19%q-o-q 3QFY26outlook ◆Revenueisexpected to be USD29.4bn,implying33% q-o-q growth◆Semiconductor solutions revenueisexpected to be USD20.5bn◆Withinsemiconductorsolutions,AI revenueisexpected togrowtoUSD16.0bn,and non-AIrevenueisexpected tobegrowby alowsingledigitq-o-qtoUSD4.5bn◆Infrastructure software revenueisexpected to be USD8.9bn◆GMis expectedtocontractq-o-qto74%◆Non-GAAP operating marginisexpected to be67%◆Adjusted EBITDAmarginisexpected to be 68% Others ◆During 2QFY26, management had bookings worthUSD30bn for AI semiconductorsagainstthe USD10.8bnthe companyshipped◆Management guided FY26 AI revenue to be cUSD56bn and FY27 AI revenue to exceedUSD100bn Valuation and risks Risks to our view Methodology, target price, and rating Key downside risks ◆Fewer-than-expected additional ASICcustomers◆Weaker-than-expected ASIC pricing premium◆Higher-than-expected share loss in thewireless segment◆Slowdown in the VMware business Frank Lee*| frank.lee@hsbc.com.hk