Club holding Broadcom 's (AVGO) investment prospects look bright – with or without cloud software maker VMWare (VMW) under its corporate roof.
For now, though, the companies remain apart after Broadcom's planned $61 billion takeover of VMWare did not close Monday, as previously scheduled.
AVGO YTD mountain Broadcom YTD With VMWare, Broadcom would be a company with sales split roughly 50-50 between its traditional semiconductor division — an artificial intelligence beneficiary — and software, which typically is higher-margin revenue.
Without VMWare, Broadcom would have freed up its capacity to reward shareholders in a different, but still meaningful, way.
Even with the buyback silver lining, our hope is Broadcom completes the VMWare deal because it should boost Broadcom's earnings over time.
Persons:
Broadcom's, CNBC's David Faber, Jim Cramer, Hock Tan, Jim, Broadcom's Tan, CNBC's Faber, There's, Jim Cramer's, Broadcom Lucas Jackson
Organizations:
Broadcom, VMWare, Club, Nvidia, Google, European Union, Financial Times, U.S, Intel, Semiconductor, Qualcomm, NXP Semiconductors, Microsoft, Activision, CNBC
Locations:
United Kingdom, Japan, Canada, China, California, Beijing