Broadcom Inc.

NEW YORK, March 11, 2026 /CNW/ -- Ukraine produced 1.2 million drones in 2024 alone. The scale is significant, as Ukraine is now deploying roughly 9,000 drones per day. But all of those drones share one vulnerability: virtually every magnet in the Ukrainian drones used in 2024 was manufactured in China. And the same is true for Western defense systems across the board.  Companies mentioned in this release include: REalloys Inc. (ALOY), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ:AVGO), Advanced Micro Devices, Inc. (NASDAQ: AMD), General Motors Company (NYSE: GM), Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)

Every drone motor, every missile guidance system, every fighter jet turbine starter…all of them depend on rare earth magnets that trace back to Chinese processing. That's a vulnerability most people haven't even begun to understand. And one company, REalloys (ALOY), is looking to close that gap before it's too late.

REalloys operates the only proven commercial-scale platform in North America for producing the heavy rare earth metals and alloys that go into defense-grade magnets. Its facility in Euclid, Ohio, is already delivering materials under U.S. government contracts. And there's a hard deadline approaching that changes everything. On January 1, 2027, new U.S. defense procurement rules take effect that will effectively ban Chinese-origin rare earth materials from American weapons systems. That means every defense contractor currently sourcing magnets or magnet materials – for drones or any other military purpose – from China will need a compliant domestic alternative…and they'll need it fast. So the companies that get qualified into these programs now might own these supply chains for decades.

China Holds the Key

China controls approximately 90–95% of global rare earth processing. Rare earths exist in the ground across North America, South America, Greenland, and elsewhere. But the West gave up the ability to actually process those raw materials into usable metals and magnets roughly 40 years ago. China filled that void and now controls nearly the entire global supply chain.

Every rare earth magnet used in Western defense systems, vehicles, electronics, and industrial equipment traces back to Chinese processing. And China maintains an incredibly strict control over its advantage, as it issues rare earth export licenses on a monthly basis. That means Beijing can throttle supply to any country at any time.

When President Trump threatened 100% tariffs on China, Beijing's counter was a threat to cut off rare earth exports. This episode highlighted the strategic leverage that rare earth export controls provide to China.

Notably, the United States currently maintains zero strategic stockpile of processed rare earths. Europe's stockpile? Also zero. The entire Western drone and defense industrial base operates on a just-in-time supply chain for the most critical materials on the planet…and it's sourced almost entirely from a geopolitical adversary that can turn the tap off any time it wants. This is the threat that makes what REalloys is building in Ohio and Saskatchewan so critical…not just as a business, but as a matter of national defense.

Why Billions in Mining Investment Haven't Fixed Anything

There's a reason billions of dollars in rare earth mining investment haven't made a dent in China's dominance. It's because most of the money was spent working to solve the wrong problem. Even President Trump has acknowledged this publicly, remarking at the World Economic Forum in Davos that America doesn't have a rare earth problem; it has a processing problem. Elon Musk echoed the same point, noting that there's nothing rare about rare earths except the processing and separating.

Converting raw rare earth minerals into defense-grade metals and magnets is a ridiculously complex industrial challenge. It involves separating 17 individual elements through multi-stage solvent extraction…then converting oxides into metals at temperatures above 1,200 degrees…then precision alloying to exact specifications across thousands of micro-steps…and all of this must be controlled with extreme precision.

Making matters worse, many companies claiming to operate supply chains outside China's influence are still quietly dependent on Chinese technology, equipment, and consumables. For example, graphite anodes, which are a critical furnace component that needs replacing several times per week, come almost exclusively from China.

As one rare earth processing expert put it: 1% reliance on China is 100% reliance on China. It's a principle that REalloys and its processing partner, the Saskatchewan Research Council, built their entire operation around…and it's why their supply chain was designed from the ground up to be completely free of Chinese dependency.

The Only Proven Platform in North America

No other company in North America has what REalloys (ALOY) has built: a proven, commercial-scale heavy rare earth supply chain that can take raw material all the way to a finished magnet with zero reliance on Chinese technology, equipment, or critical consumables.

The company controls every step of the supply chain. Upstream, it owns the Hoidas Lake rare earth project in Saskatchewan and has locked in non-binding feedstock agreements with partners in Kazakhstan, Brazil, and Greenland. Midstream, it holds an exclusive 80% offtake on production from the Saskatchewan Research Council's Rare Earth Processing Facility in Saskatoon, targeting first commercial production in late 2026 to early 2027. Downstream, it operates a metallization and magnet-manufacturing facility in Euclid, Ohio, which is a site with more than three decades of specialty metals experience and existing contracts with the U.S. Department of Defense, Department of Energy, and NASA.

That Euclid facility is a critical asset. It is currently the only facility in North America with a proven track record of delivering heavy rare earth metals, alloys, and magnets to government and commercial partners. The team behind it goes back over 40 years, including eight years of hands-on collaboration with U.S. national laboratories and the Defense Logistics Agency. And the processing technology that feeds it is just as impressive. Where a comparable Chinese facility requires roughly 80 workers running manual operations around the clock, the SRC's AI-driven system runs the entire separation process with six people.

When China blocked the export of processing technology in 2020, SRC built everything from the ground up…and ended up building something better. By early 2027, the combined platform is expected to produce approximately 525 tonnes per year of neodymium-praseodymium metal, roughly 30 tonnes of dysprosium oxide, and 15 tonnes of terbium oxide. At that scale, the SRC facility would be the largest source of heavy rare earth oxides outside China, sitting right in North America's backyard.

Why the Next 12 Months Change Everything

On January 1, 2027, new U.S. defense procurement rules take effect that will effectively ban Chinese-origin rare earth materials from American weapons systems. Every defense contractor that currently sources magnets or magnet materials from China will need a compliant domestic alternative. That deadline is now less than a year away, and qualification alone takes years while material is tested, stressed, retested, incorporated into components, and evaluated again after changes in scale. Any variation in chemistry, microstructure, or processing conditions can reset the entire clock.

Once a supplier clears that process, replacing them becomes a technical and regulatory headache that nobody wants to take on. Defense platforms are designed to operate for decades, and suppliers are chosen early and rarely replaced.

The U.S. Export-Import Bank has issued a $200 million letter of intent to support the company's supply chain development. The Japan Organization for Metals and Energy Security (JOGMEC) has signed an MOU covering technology transfer and potential financing. And the company's board reads like a who's who of defense and policy leadership: Chairman Stephen S. DuMont, President of GM Defense; General Jack Keane (Ret.), four-star general and recipient of the Presidential Medal of Freedom; former Saskatchewan Premier Brad Wall; and former Canadian Ambassador to the U.S. David MacNaughton.

When the U.S. defense establishment, allied governments, and major financial institutions all start backing the same company, it usually means something. In rare earth processing, where the barriers are measured in years of expertise rather than dollars of capital, being first matters more than being biggest. REalloys got there first.

Heavy rare earths are essential technology. Here are 5 companies to watch over the coming months that have exposure to the rare earth space:

Apple Inc. (NASDAQ: AAPL) has essentially decoupled its hardware from the traditional rare earth mining market. As of their 2025 environmental audits, the company reached a milestone: over 99% of the rare earths used in all Apple-designed magnets are now sourced from recycled materials. This is a massive achievement powered by their proprietary disassembly robots like Daisy and Dave, which recover magnets from old iPhones that industrial shredders would normally pulverize and lose. 

To lock this in for the long haul, Apple signed a landmark $500 million agreement with MP Materials in mid-2025. This deal secures a domestic supply of magnets refined at Mountain Pass, California, and manufactured in Northlake, Texas.

Broadcom Inc. (NASDAQ: AVGO) is the "quiet giant" of the AI hardware world, specializing in the high-speed networking chips that connect thousands of GPUs in a data center. In early 2026, they secured a massive $21 billion order from Anthropic for custom AI accelerators. These chips, and the optical transceivers that accompany them, require precision magnets and specialized alloys that have been subject to significant export delays and 45% tariffs over the last year.

Broadcom's stock has been one of the top performers in the semiconductor sector, recently hitting new highs as investors realize that you can't build an AI supercomputer without Broadcom's interconnect technology. They've successfully integrated VMware into their business, shifting toward a high-margin software-plus-hardware model.

Advanced Micro Devices, Inc. (NASDAQ: AMD) is currently the strongest rival to NVIDIA in the AI space, and they are doing it by leaning into an "open ecosystem" strategy. Helios is designed to be "circular-ready," meaning it's built so that rare earth magnets and other high-value metals can be easily stripped and recycled when the hardware is decommissioned after its 3-to-5-year life cycle in a data center.

Financially, AMD's stock has been bolstered by its aggressive product roadmap, specifically the Instinct MI400 series GPUs. While NVIDIA has the market share, AMD has the "favored alternative" status among hyperscalers like Google and Microsoft who want to avoid vendor lock-in.

General Motors Company (NYSE: GM) has expanded its upstream exposure as access to battery raw materials increasingly dictates EV scaling timelines. The automaker continues to secure direct stakes and long-term contracts across the lithium, nickel, and cobalt value chains to underpin its Ultium platform.

Its investment in Lithium Americas' Thacker Pass project provides priority access to Phase 1 lithium supply, supporting full U.S. tax credit eligibility under current IRA guidelines. GM has also expanded nickel and cobalt supply arrangements with global miners to diversify sourcing.

TSMC (NYSE: TSM) is the "foundry of the world," and as such, they are the single largest consumer of the high-purity chemicals and minerals used in semiconductor manufacturing. At their massive site in Phoenix, Arizona, they recently broke ground on an Industrial Water Reclamation Plant. This $20+ billion facility is designed to recapture up to 90% of the water used in chipmaking.

Financially, TSMC remains a powerhouse, with early 2026 revenue projections showing nearly 30% growth. The stock continues to be a favorite for those wanting exposure to the AI boom, as every major player relies on TSMC's Taiwan and Arizona fabs. However, the company is constantly navigating the "Taiwan Risk," which is why their

By. Josh Owens

Oilprice Intelligence brings you the inside view on where the next gains will come from, breaking down the market's biggest growth driver with analysis from oilmen and experts. Click here to get this intel for free

IMPORTANT NOTICE AND DISCLAIMER 

FORWARD LOOKING STATEMENTS

This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies' actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies concerning, among other things, recreational and medical cannabis sales, success of the company's proprietary technology, the size and growth of the market for the company's products and services, the company's ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

SHARE OWNERSHIP

Neither the author nor the publisher, Oilprice.com, was paid to publish this communication concerning REalloys (ALOY). However, the owner of Oilprice.com owns shares and/or stock options of the featured company and therefore has an incentive to see the featured company's stock perform well. The owner of Oilprice.com may buy or sell shares of the featured company at any time including at or near the time you receive this communication. This share ownership should be viewed as a major conflict with our ability to be unbiased. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities. 

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR and/or other government filings. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

TERMS OF USE

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http://oilprice.com/terms-and-conditions If you do not agree to the Terms of Use http://oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

Oilprice.com is the Publisher's trademark. All other trademarks used in this communication are the property of their respective trademark holders.  The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.

OilPrice.com

+44 203 239 4080

info@oilprice.com

SOURCE: Oilprice.com

View original content:https://www.prnewswire.com/news-releases/the-drone-revolutions-dependence-on-chinese-rare-earth-processing---oilpricecom-market-commentary-302711142.html

• Revenue of $19,311 million for the first quarter, up 29 percent from the prior year period
• GAAP net income of $7,349 million for the first quarter; Non-GAAP net income of $10,185 million for the first quarter
• Adjusted EBITDA of $13,128 million for the first quarter, or 68 percent of revenue
• GAAP diluted EPS of $1.50 for the first quarter; Non-GAAP diluted EPS of $2.05 for the first quarter
• Cash from operations of $8,260 million for the first quarter, less capital expenditures of $250 million, resulted in $8,010 million of free cash flow, or 41 percent of revenue
• Quarterly common stock dividend of $0.65 per share
• Second quarter fiscal year 2026 revenue guidance of approximately $22.0 billion, an increase of 47 percent from the prior year period
• Second quarter fiscal year 2026 Adjusted EBITDA guidance of approximately 68 percent of projected revenue ⁽¹⁾
• New $10 billion share repurchase program

PALO ALTO, Calif., March 4, 2026 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2026, ended February 1, 2026, provided guidance for its second quarter of fiscal year 2026 and announced its quarterly dividend.

"Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking," said Hock Tan, President and CEO of Broadcom Inc. "Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2."

"Consolidated revenue grew 29% year-over-year to a record $19.3 billion. Adjusted EBITDA increased 30% year-over-year to a record $13.1 billion, representing 68% of revenue. In Q2 we expect revenue growth to increase 47% year-over-year to $22.0 billion, with adjusted EBITDA of 68%," said Kirsten Spears, CFO of Broadcom Inc. "Consistent with our commitment to return excess cash to shareholders, we returned $10.9 billion in the first quarter through $3.1 billion of cash dividends and $7.8 billion of stock repurchases." 

First Quarter Fiscal Year 2026 Financial Highlights

The Company's cash and cash equivalents at the end of the fiscal quarter were $14,174 million, compared to $16,178 million at the end of the prior fiscal quarter.

During the first fiscal quarter, the Company generated $8,260 million in cash from operations and spent $250 million on capital expenditures, resulting in $8,010 million of free cash flow.

On December 31, 2025, the Company paid a cash dividend of $0.65 per share, totaling $3,086 million.

The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below and presented in detail in the financial reconciliation tables attached to this release.

Second Quarter Fiscal Year 2026 Business Outlook

Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2026, ending May 3, 2026, is expected to be as follows:

• Second quarter revenue guidance of approximately $22.0 billion; and
• Second quarter Adjusted EBITDA guidance of approximately 68 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Board of Directors of Broadcom has approved a quarterly cash dividend of $0.65 per share. The dividend is payable on March 31, 2026 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on March 23, 2026.

New Share Repurchase Program

The Board of Directors of Broadcom has authorized a new share repurchase program to repurchase up to $10 billion of its common stock through December 31, 2026. Repurchases under the new share repurchase authorization may be made through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. Broadcom is not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the first quarter of fiscal year 2026 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release to the extent available without unreasonable effort. Broadcom believes non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons. 

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations' complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com. 

Cautionary Note Regarding Forward-Looking Statements 

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, our plans and expectations with regard to our share repurchases, and other statements identified by words such as "will," "expect," "believe," "anticipate," "estimate," "should," "intend," "plan," "potential," "predict," "project," "aim," and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom's management, current information available to Broadcom's management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; the slow or unsuccessful return on our investments, expansion of our business strategy or adoption of new business models; cyclicality in the semiconductor industry or in our target markets; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cybersecurity threats and a breach of security systems; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our dependency on a limited number of suppliers; prolonged disruptions of our, our customers' or our suppliers' facilities or other significant operations; our ability to maintain appropriate manufacturing capacity and quality; our ability to continue winning business in the semiconductor solutions industry; dependence on and risks associated with distributors and other channel partners of our products; ability of our software products to manage and secure IT infrastructures and environments; demand for our data center virtualization products and customer acceptance of our products, services and business strategy; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; use of open source software in our products; sales to government customers; our ability to manage products and services lifecycles; our competitive performance; quarterly and annual fluctuations in operating results; our ability to maintain or improve gross margin; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; involvement in legal proceedings; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our compliance with privacy and data security laws; corporate responsibility matters; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; the amount and frequency of our share repurchase program; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature. We are not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time.

Our filings with the SEC, which are available without charge at the SEC's website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Ji Yoo

Broadcom Inc.

Investor Relations

650-427-6000

investor.relations@broadcom.com

(AVGO-Q)