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.
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The deal increases Broadcom’s exposure to US defense agencies and government cloud and security workloads.
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At the same time, Broadcom is dealing with capacity constraints at TSMC, its key manufacturing partner, as AI chip demand strains available supply.
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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…