- The recent announcement that Google Cloud and Broadcom will collaborate on integrating cloud services with enterprise level software and security is bullish for Broadcom.
- The agreement is concrete validation of Broadcom's strategy to diversify into the higher margin enterprise software sector.
- It's a win-win for Google as well: having its cloud services business integrated with AVGO's enterprise-level software/security makes it an easy sell to customers requiring secure-cloud services.
- Meantime, a recovery in wireless after the delayed iPhone12 means AVGO is now hitting on all cylinders: networking, storage, data-center, and broadband.
- Broadcom is still my favorite dividend growth stock and I expect another significant dividend increase this year to tack onto the current $14.40/share annual dividend.
For further details see:
Win-Win: Google Cloud Tie-Up Validates Broadcom's Enterprise Software/Security Strategy