Broadcom's strong AI growth narrative, driven by collaborations with Google's TPU ecosystem and OpenAI, continued to fuel investor confidence on January 31, despite significant operational and geopolitical risks related to its VMware acquisition.
- Customer friction and legal disputes persist regarding VMware integration and pricing.
- Geopolitical risks escalated as China mandated the removal of foreign software, including VMware, from state-owned enterprises, threatening Broadcom's regional software revenue.