Broadcom recently completed its $61 billion acquisition of VMware Corp., a virtualization software giant. The company expects to deliver around $50 billion in annual revenue in fiscal 2024, including contributions from VMware, which is lower than the analysts' forecast of $52.5 billion. Despite facing competition from Nvidia Corp. and a slowdown in new orders from one of its biggest clients, Cisco Systems Inc., Broadcom's stock has risen by 65% year-to-date, outperforming the 49% rise in the ICE Semiconductor Index.
Key takeaways:
- Broadcom Inc. reported lower than expected annual revenue forecast due to weak enterprise spending and increased competition in the networking chips industry.
- The company recently completed its $61 billion acquisition of VMware Corp., a virtualization software giant, after facing regulatory scrutiny.
- Broadcom's semiconductor solutions business unit reported $7.3 billion in sales, while its infrastructure software segment added $2 billion.
- Despite the lower forecast, Broadcom expects to deliver around $50 billion in annual revenue in fiscal 2024, including a contribution from VMware.