By Maham Fatima
Publication Date: 2026-08-08 20:42:00
Broadcom (NASDAQ:AVGO) has drawn significant market attention in 2026 for its custom AI chips. But the company’s August 6 announcement of new VMware vDefend and Avi Load Balancer capabilities is a reminder that its infrastructure software business, the one built to throw off steady, high-margin cash, is still evolving too. With the stock sitting roughly 20% below the all-time high it set at the end of May, investors are left weighing a fast-growing chip story against a market that has already pulled back once this year.
Bull Case: A Business Firing On Two Engines
The custom chip pipeline remains the headline growth driver. Chief Executive Hock Tan has told investors Broadcom’s AI semiconductor business will top $100 billion in revenue in 2027, a jump from the $10.8 billion it generated in the second quarter alone, up 143% year over year. Alphabet Inc. (NASDAQ:GOOGL) is currently the…
