Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Broadcom Inc.'s financial results for the fourth quarter and fiscal year 2024 reveal a year marked by significant growth driven by strategic acquisitions and advancements in AI technologies.</li><li>The company's consolidated revenue for the fiscal year reached $51.6 billion, showcasing a 44% year-over-year increase.</li><li>This growth was bolstered not only by strong organic growth of over 9% but also by the strategic acquisition and integration of VMware, which contributed notably to Broadcom's financial achievements.</li></ul>

Broadcom Inc.'s financial results for the fourth quarter and fiscal year 2024 reveal a year marked by significant growth driven by strategic acquisitions and advancements in AI technologies.The company's consolidated revenue for the fiscal year reached $51.6 billion, showcasing a 44% year-over-year increase.This growth was bolstered not only by strong organic growth of over 9% but also by the strategic acquisition and integration of VMware, which contributed notably to Broadcom's financial achievements.

Broadcom Inc: These Are The 5 Major Hurdles That It Faces In 2025! - Major Drivers

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Constituent changes to the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX</a> and capping changes will result in a round-trip trade of US$17.7bn across the Select Sector indices and the S&amp;P500 Equal Weight Index.</li>
<li>There is over US$500m to trade in <a href="https://www.smartkarma.com/entities/broadcom-inc" target="_blank" data-smartkarma-citation="entities:998:1" rel="noopener">Broadcom (AVGO US)</a>, <a href="https://www.smartkarma.com/entities/tesla-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla (TSLA US)</a>, <a href="https://www.smartkarma.com/entities/apollo-global-management-inc" target="_blank" data-smartkarma-citation="entities:28770:1" rel="noopener">Apollo Global Management (APO US)</a>, <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> and <a href="https://www.smartkarma.com/entities/workday-inc-class-a" target="_blank" data-smartkarma-citation="entities:5660:1" rel="noopener">Workday Inc Class A (WDAY US)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/broadcom-inc" target="_blank" data-smartkarma-citation="entities:998:1" rel="noopener">Broadcom (AVGO US)</a> swings from a small net buy to a large net sell following the rally in the stock last week.</li>
</ul>


Constituent changes to the S&amp;P 500 INDEX and capping changes will result in a round-trip trade of US$17.7bn across the Select Sector indices and the S&amp;P500 Equal Weight Index.
There is over US$500m to trade in Broadcom (AVGO US), Tesla (TSLA US), Apollo Global Management (APO US), Amazon.com Inc (AMZN US) and Workday Inc Class A (WDAY US). 

Broadcom (AVGO US) swings from a small net buy to a large net sell following the rally in the stock last week.


Select Sector Indices and S&P Equal Weight Rebalance: US$17.7bn Round-Trip Trade Post Capping Cutoff

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>FY24 AI revenue as guided US$12.2bn. 1Q25 AI revenue to increase 65% YoY. FY27 “serviceable market” or “opportunity” could reach US$60-90bn. Actual revenues could be ~70% of that.</li>
<li>Mngt announced another 2 hyperscale customers (one is Apple). At least 1 new new customer could add significant revenues before FY27 (adding to the 60-90bn above). </li>
<li>Stock up 14% aftermarket, trading at 32x FY25 EPS. We expect Consensus EPS to revise up 10-20%. Nvidia trades at 32x next FY (FY26). Positive to suppliers Hynix and TSMC.</li>
</ul>


FY24 AI revenue as guided US$12.2bn. 1Q25 AI revenue to increase 65% YoY. FY27 “serviceable market” or “opportunity” could reach US$60-90bn. Actual revenues could be ~70% of that.
Mngt announced another 2 hyperscale customers (one is Apple). At least 1 new new customer could add significant revenues before FY27 (adding to the 60-90bn above). 
Stock up 14% aftermarket, trading at 32x FY25 EPS. We expect Consensus EPS to revise up 10-20%. Nvidia trades at 32x next FY (FY26). Positive to suppliers Hynix and TSMC.


Broadcom: AI Hyper-Growth to Continue – Worries of a Slowdown Are Wrong – Positive to SK Hynix, TSMC

<ul><li>Broadcom Inc. reported a strong fiscal third quarter in 2024, with consolidated net revenue of $13.1 billion, marking a 47% increase compared to the same period last year.</li><li>The operating profit also rose by 44% year-on year.</li><li>This performance can be largely attributed to the growth in AI revenue, accelerated bookings at VMware, and the stabilization of non-AI semiconductor revenue.</li></ul>

Broadcom Inc. reported a strong fiscal third quarter in 2024, with consolidated net revenue of $13.1 billion, marking a 47% increase compared to the same period last year.The operating profit also rose by 44% year-on year.This performance can be largely attributed to the growth in AI revenue, accelerated bookings at VMware, and the stabilization of non-AI semiconductor revenue.

Broadcom’s Revenue Forecast A Bit Optimistic? Can AI and VMware Keep the Growth Streak Alive?

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Broadcom (AVGO US, NR) released its 3QFY24 results. Revenue went up by 47% YoY/5% QoQ to US$13.1bn, in-line with consensus (US$13.0bn).</li><li>By segment, semiconductor/ infrastructure software revenue attributed 56%/44% of revenue vs. 78%/22% in 3QFY23.</li><li>Semiconductor sales was US$7.3bn, up 5% YoY/1% QoQ. Infrastructure software sales was US$5.8bn, up 200% YoY/10% QoQ, of which VMware contributed US$3.8bn</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Broadcom (AVGO US, NR) released its 3QFY24 results. Revenue went up by 47% YoY/5% QoQ to US$13.1bn, in-line with consensus (US$13.0bn).By segment, semiconductor/ infrastructure software revenue attributed 56%/44% of revenue vs. 78%/22% in 3QFY23.Semiconductor sales was US$7.3bn, up 5% YoY/1% QoQ. Infrastructure software sales was US$5.8bn, up 200% YoY/10% QoQ, of which VMware contributed US$3.8bnContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Semiconductors - Broadcom’s 3Q earnings summary; in-line results failed to impress investors

United States

Broadcom Inc. designs, develops, and supplies semiconductor and infrastructure software solutions. The Company offers storage adapters, controllers, networking processors, motion control encoders, and optical sensors, as well as infrastructure and security software to modernize, optimize, and secure the most complex hybrid environments. Broadcom serves customers worldwide.

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Broadcom (AVGO US)

Broadcom Inc: These Are The 5 Major Hurdles That It Faces In 2025! - Major Drivers

Broadcom Inc.'s financial results for the fourth quarter and fiscal year 2024 reveal a year marked by significant growth driven by strategic...

Baptista Research

Select Sector Indices and S&P Equal Weight Rebalance: US$17.7bn Round-Trip Trade Post Capping Cutoff

Constituent changes to the SnP500 Index and capping changes result in a round-trip trade of US$17.7bn across the Select Sector and the SnP500 Equal...

Brian Freitas

Broadcom: AI Hyper-Growth to Continue – Worries of a Slowdown Are Wrong – Positive to SK Hynix, TSMC

Broadcom strong growth potential in AI revenue continues. US$12.2bn AI revenues in FY24 , could grow to a market opportunity of $60-90bn in FY27....

Nicolas Baratte

Broadcom’s Revenue Forecast A Bit Optimistic? Can AI and VMware Keep the Growth Streak Alive?

Broadcom Inc. reported a strong fiscal third quarter in 2024, with consolidated net revenue of $13.1 billion, marking a 47% increase compared to...

Baptista Research

Semiconductors - Broadcom’s 3Q earnings summary; in-line results failed to impress investors

Broadcom (AVGO US, NR) released its 3QFY24 results. Revenue went up by 47% YoY/5% QoQ to US$13.1bn, in-line with consensus (US$13.0bn).

CMB International

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