Overview Key strengths Key risks Significant revenue scale, industry leading margins across the semiconductor and software businesses, and strong free cash flow. Acquisition-driven growth strategy, resulting in a volatile leverage profile over time. Diverse semiconductor portfolio with a strong focus on AI, supplying to data center, enterprise, and networking markets. Limited track record of managing large enterprise software businesses at aggressive margin profiles. An increasing share of software revenues accelerated by the VMware LLC acquisition, which helps moderate operating cyclicality. Legacy semiconductor business that remains cyclical and exposed to the inherent volatility of the industry. We upgraded Broadcom upon close in late 2023 to reflect its improving business risk profile. VMware shifts Broadcom's business mix further away from semiconductors, bringing
