In Case You Missed It: U.S. Most Read Research Week of June 01 – June 05

Research evidence excerpt

In Case You Missed It: U.S. Most Read Research Week of June 01 – June 05

built with Apollo and Blackstone to fund capacity for Anthropic and OpenAI, we estimate only ~5 GW is

delivered in FY27 (~1.3 GW OpenAI + ~3.5 GW Anthropic), implying ~15 GW still to ship in FY28 for those two customers

alone; folding in Google, Meta, and other at-scale programs, we think FY28 AI revenue could approach $300B - far in excess of

current expectations. We would also highlight accelerating software momentum: VMW is reaccelerating as rising server CPU

core counts (increasingly deployed alongside GPUs) drive VCF adoption, with Jul-Q software guided to $8.9B (+31% Y/Y) and

ARR growth holding in the high-teens% - we would expect this strength to persist for multiple quarters given the strong ramp in

server CPU deployments currently underway. On profitability, while consolidated GM compresses as margin-dilutive XPU

revenue mixes higher (Jul-Q GM guided to ~74%), relatively flat opex should keep operating margin roughly steady near-term

before inflecting higher on sharply rising revenue (strong operating leverage setup). Though mgmt continues to anchor FY27 AI

revenue at “>$100B,” we read this as conservatism/moderation (the team wants more certainty on brick/mortar datacenter

build/securing power commitments) and we reiterate our $150B+ outlook for FY27. Net, we are increasing our estimates and

consequently raising our price target to $580 (from $500). We reiterate our Overweight (OW) rating on AVGO, which remains

our top pick in the semiconductor sector.

Analyst Focus List (Ken Goldman) - 01 June 2026

U.S. Equity Thematic Research

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