AVGO Stock Jumps: AI Drives Upside, But At Software’s Cost?
Summary
Broadcom delivered strong overall quarterly results driven by AI semiconductor demand while its infrastructure software unit, built around its acquisition of VMware, slowed to just 1% revenue growth in Q1 2026. Software services' share of total revenue declined to 35.2% from 45% a year ago, though management forecast a 9% rebound in the segment to $7.2 billion in Q2. The company projected AI chip revenue could exceed $100 billion by 2027 and unveiled a $10 billion share repurchase program, which helped lift shares in after-market trading. Total revenue rose 29% to $19.31 billion and the Q2 revenue guide of about $22 billion topped analyst expectations.
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industries
HealthTech
applications
Accounting and Taxes
AskAI Classifications
Labels
Infrastructure Software
Enterprise Software
Cybersecurity Software
Linked Companies
Broadcom Inc.
$50M to $100M
Symantec
$25M to $50M
CA Technologies
$1B+
Google LLC
$100M to $250M
VMware
$1M to $5M
Anthropic
$10M to $25M