By Simply Wall St
Publication Date: 2026-03-24 15:05:00
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Broadcom (NasdaqGS:AVGO) has secured a five year, $970 million blanket purchase agreement with the Defense Information Systems Agency covering software and infrastructure, including VMware Cloud Foundation.
The deal increases Broadcom’s exposure to US defense agencies and government cloud and security workloads.
At the same time, Broadcom is dealing with capacity constraints at TSMC, its key manufacturing partner, as AI chip demand strains available supply.
The company is turning to longer term silicon agreements to help manage these emerging supply chain bottlenecks and support customer commitments.
For investors watching Broadcom at a share price of $322.51, these contract wins and supply pressures arrive after very large multi year share price gains and a 70.0% return over the past year. In the shorter term, the stock has seen a 0.7% decline over the past…
