By Khac Phu Nguyen
Publication Date: 2026-10-23 18:08:00
Semiconductor and infrastructure-software giant Broadcom AVGO secured a 10-year VMware agreement with Japan’s NTT DOCOMO, extending a major customer relationship. Shares traded at $326.075 on October 23, up approximately 0.88% at 10.45am EST on Friday. The investor question is straightforward: how much earnings power does that decade-long commitment bring?
The agreement covers software licenses, maintenance and technical support. Broadcom’s announcement describes a relationship dating to 2019, with VMware Cloud Foundation underpinning DOCOMO’s private cloud. The companies plan to improve reliability, security and deployment speed while preparing the platform for AI workloads. Financial terms were not disclosed, leaving investors without an annual contract value or a clear measure of its profit contribution.
The valuation snapshot puts Broadcom 24.74% below its $433.26 GF Value estimate, suggesting potential undervaluation rather than guaranteed upside. DOCOMO’s commitment strengthens…