Resonac Establishes Consortium for Next-Generation Semiconductor Packaging Development

Resonac has launched a consortium called JOINT3, comprising 27 global semiconductor leaders, to develop next-generation semiconductor packaging technology using organic interposers. The consortium will establish an Advanced Panel Level Interposer Center (APLIC) at Resonac's Shimodate Plant in Japan, where a prototype production line for 515 x 510mm panel-level organic interposers will be set up. The goal is to accelerate development efforts and overcome challenges in producing larger interposers.

Broadcom (AVGO.US) is set to release its quarterly financial report after the market close on September 4, Eastern Time. The report is expected to show a significant year-on-year increase in revenue and earnings per share, driven by robust demand for AI products and the company's infrastructure software business. The expected revenue for Q3 of fiscal year 2025 is $15.823 billion, representing a 21.04% year-on-year increase, with earnings per share anticipated at $1.067 [1].

AI Semiconductor Business: Exceeding Expectations

The AI semiconductor business is expected to be a key driver of Broadcom's performance. Revenue from AI products, including customized application-specific integrated circuits (ASICs) and network solutions, is anticipated to reach $5.2 billion to $5.4 billion for the quarter, surpassing market expectations of $5.1 billion. This strong performance is largely due to the mass production phase of Google's TPUv6 3-nanometer chip (code-named "Ironwood") and the commencement of mass production for Meta's MTIA inference chips. JPM forecasts that AI business revenue for fiscal year 2025 will exceed $20 billion, a 60% year-on-year increase [1].

Infrastructure Software Business: VMware Subscription Conversion

In the infrastructure software business, Broadcom is expected to continue its strong momentum, driven by robust renewal and upgrade demand from large enterprise customers for VMware Cloud Foundation (VCF) full-stack solutions. The conversion to higher average selling price (ASP) products and upselling is anticipated to drive revenue growth. Citi's research indicates that Broadcom's leading market position in AI infrastructure, combined with its diversified end-market layout and industry-leading margins, will likely result in outstanding performance in this fiscal quarter [1].

Market Sentiment: Bullish Outlook

The market sentiment surrounding Broadcom's earnings report is predominantly bullish, as indicated by a decrease in the put-to-call options ratio and an increase in transaction volume. The peak of call options open interest is concentrated at $320 per share, while the peak of put options is at $290 per share. The volatility forecasts from options suggest that the post-earnings swing is expected to be within ±6.73% [1].

Conclusion

Investors and financial professionals should closely monitor Broadcom's Q3 earnings report, focusing on the AI semiconductor business and VMware subscription conversion. The company's strong performance in these areas, along with robust market sentiment, suggests that the report is likely to exceed both its own and market expectations.

References:

[1] https://news.futunn.com/en/post/61537786/a-forward-looking-perspective-broadcom-s-earnings-report-can-the