Broadcom Software Growth, Corning $6B Deal and Iren’s Nvidia Pipeline Expansion
NVDA•Broadcom’s infrastructure software segment grew ARR by 17% y/y to $7.2B last quarter at a 79% operating margin, offsetting lower-chip margins. Corning secured a $6B Amazon optical-fiber deal at a 61.7 P/E ratio, and Iren landed a $3.4B Nvidia data-center contract to expand its pipeline to 5.8GW.
1. Broadcom Software Segment
Broadcom’s infrastructure software ARR rose 17% year-over-year to $7.2 billion last quarter, representing 32% of revenue and a 79% operating margin. This high-margin revenue base offsets pressure from custom AI chip sales, enabling management to guide consolidated operating margins around 67% despite a forecast gross margin decline to 74%.
2. Corning Optical Connectivity Deal
Corning signed a multiyear contract worth approximately $6 billion with Amazon to supply Multicore Fiber solutions for data centers, cutting cable requirements by 75% and boosting performance. The stock trades at a P/E of 61.7, suggesting investors need a multiyear horizon given execution risks and potential AI demand fluctuations.
3. Iren Data Center Expansion
Iren doubled its data center pipeline to 5.8 GW in under six months through acquisitions and partnerships, including an $11.33 million per MW arrangement yielding a $3.4 billion deal with Nvidia. While this expansion points to a potential $65.7 billion in recurring revenue, converting capacity into profitable operations remains a key execution risk.
