VMW - Broadcom Is Becoming a Software Stock Too -- Is It a Top Long-Term Buy?
2023-10-07 10:30:00 ET
The long-awaited merger between top semiconductor giant Broadcom (NASDAQ: AVGO) and cloud computing software pillar VMware (NYSE: VMW) is almost complete. Broadcom management has said it expects the tie-up to be finished by the end of October 2023, pending final regulatory sign-off in China.
Once complete, VMware will transform Broadcom from a primarily semiconductor business into one balanced between hardware and software -- and one of the largest enterprise software businesses out there. Is Broadcom stock a buy now?
Even ahead of what will be about a $70 billion takeover of VMware, which should be the largest technology acquisition ever, Broadcom is already a sizable software operation. Though just about 20% of total revenue, Broadcom software is expected to haul in $7.6 billion in fiscal 2023. It's made numerous other purchases of enterprise software companies, building a suite of cloud management and security services to add to its giant semiconductor design and manufacturing prowess.
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Broadcom Is Becoming a Software Stock, Too -- Is It a Top Long-Term Buy?