Trend Analysis
In November 2023, Broadcom completed its acquisition of cloud computing and virtualization technology company VMWare, thus giving it a foothold in enterprise software, virtualization, and hybrid cloud infrastructure. Lately, the company is expanding partnerships to combine VMware Cloud Foundation with AI/ML workloads – including integration with NVIDIA GPUs/DPUs – to allow enterprises to run AI/ML alongside traditional enterprise workloads. This has had an effect on past line item trends versus those in the most recent quarter in multiple ways.
Source: Company Information; Leverage Shares analysis
Upon acquiring VMware, Broadcom had to recognize roughly $45.6 billion in intangible assets (customer relationships, developed technology, and trademarks), a large portion of this non-cash expense was assigned into the “Cost of Revenue” for the software segment in FY 2024.
Broadcom began transitioning VMware from a perpetual license model to a subscription-only model,…
