Overview

• NTT is partnering with Broadcom to develop optical semiconductor packages targeting up to 50% lower data‑center power consumption and higher throughput by 2026, tied to NTT’s IOWN initiative.
• Mizuho reiterated Broadcom as Outperform with a $410 price target, calling it the “King of AI Custom Silicon” and advising investors to buy the pullback.
• Mizuho’s work notes the disclosed $10 billion OpenAI‑linked AI rack order uses pass‑through costs to avoid margin stacking, with estimated gross‑margin impact of 166–286 bps from FY2026–FY2028 and only a 3–4% EPS effect.
• Broadcom raised its fiscal 2026 AI growth outlook to 50–60% and projects about $6.2 billion in AI chip sales next quarter, reflecting accelerating demand for custom silicon and networking.
• In Q3 FY2025, revenue reached roughly $16 billion, up 22% year over year, with AI revenue up 63% to $5.2 billion, as shares recently traded near $336 and the stock’s higher multiple reflects an AI‑driven and VMware‑boosted model.