JP Morgan More Confident in Broadcom Estimates Following Higher iPhone/iPad Forecasts

“The increases to iPhone and iPad shipment forecasts by J.P. Morgan's IT Hardware analyst potentially poses incremental upside to Broadcom's

connectivity revenues and adds fuel to our conviction that BRCM is facing a positive product cycle in the 2H of this year and beyond,” JP Morgan wrote in a report this morning. “Given ~$5 of BRCM content in iPhones and ~$6 of content in iPads, the raised forecast could represent ~$22-24M of incremental connectivity revenues for BRCM in 2Q versus our prior expectations. Additionally, given our view on iPhone and iPad demand in 3Q, we believe the incremental growth in Apple

revenues to Broadcom in 3Q will be ~+$50-$55M versus 2Q.” Broadcom closed Wednesday at $33.30.