Broadcom Now Owns VMware -- Will the Stock Continue to Soar in 2024?

Semiconductor designer and niche enterprise software provider Broadcom (NASDAQ: AVGO) is a big lumbering beast of a tech company. And with VMware now part of the operation, its software segment is a titan too. A company that expects to generate $50 billion in revenue next year -- roughly 60% from chip sales and 40% from software -- is a unique business and a type of all-in-one tech investment proposition.

Broadcom stock is up over 70% year to date. Will it continue to soar in 2024?

First, let's acknowledge Broadcom's great fiscal 2023 (the year ended Oct. 29, 2023). Networking revenue jumped 21% higher, driven by higher generative artificial intelligence (AI) chip sales. AI more than offset a flat wireless chip business (primarily supplying Apple), as well as offsetting a cyclical downturn that began to crop up in the second half of the year in enterprise compute, broadband infrastructure, and non-AI data center sales. The existing infrastructure software business (before the VMware acquisition was complete) had a stable year with sales rising 3%.

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Source Fool.com