Broadcom has reported strong growth in its latest quarterly earnings, with revenue reaching $14.92 billion and net income soaring to $5.5 billion. The company’s acquisition of VMware appears to be a success, as 70% of large customers have adopted the Cloud Foundation stack.
The results are largely due to Broadcom’s shift towards selling bundles of code and support under subscriptions that are more costly than Virtzilla’s previous licenses. This strategy has led to an increase in revenue from software sales, with $6.7 billion generated in Q1 compared to $4.55 billion last year.
The acquisition of VMware has also enabled Broadcom to tap into the growing AI market, with custom AI silicon being developed for seven hyperscalers. The company is working on delivering high-performance clusters that will support massive amounts of AI workloads.
In a surprising move, Ingram Micro has announced it will stop doing business with Broadcom and reduce its engagement with VMware to “limited”. However, this decision does not appear to have affected Broadcom’s results.
The company’s CEO, Hock Tan, has hinted at further expansion plans, saying that he is “too busy” with AI and VMware projects. This suggests that the rumors about Broadcom buying a chunk of Intel may be unfounded for now.
Source: https://www.theregister.com/2025/03/07/broadcom_q1_fy2025