Broadcom’s (NASDAQ: AVGO) acquisition of VMware has been a massive success. Broadcom has made many significant changes to extract value and improve VMware from a financial standpoint. So far, the changes have brought huge benefits to Broadcom.
The semiconductor company reported revenue growth in its software segment of 47% last quarter, primarily due to VMware. Broadcom has also massively increased the profitability of VMware. In Aug. 2023, just before the acquisition, VMware had an adjusted operating margin of just under 29%. At the end of 2024, Broadcom’s Chief Executive Officer (CEO) Hock Tan said this figure hit 70%.
