By Trefis Team
Publication Date: 2026-04-17 11:59:00
Imagine a business with such immense pricing power that it can raise rates by as much as 4x to 5x while leaving customers virtually no option but to accept.
Broadcom (AVGO) has built exactly that.
By acquiring indispensable enterprise tools and shifting them to high-cost subscription models, AVGO has created a predictable, high-margin business that is difficult for customers to exit, despite significant price friction.
This software engine now serves as the high-yield annuity powering the company’s aggressive expansion into AI hardware. See the three vectors powering AVGO stock
What Does The Software Business Do?
The software division is built around the data center stack.
VMware, acquired in 2023, provides the virtualization layer that enables servers to run multiple workloads simultaneously, reducing the physical hardware companies need to own and operate. The division targets the…
