Broadcom (AVGO): Can VMware Remain a Durable Cash Engine as Customers Reassess Private Clouds?

Broadcom Inc. (NASDAQ:AVGO) offers enterprises a way to control cloud costs while keeping critical systems reliable. VMware Cloud Foundation combines computing, storage, networking, and management software. Its investment appeal rests on customers renewing because the platform improves their economics, alongside the difficulty of replacing established infrastructure. Broadcom Inc. (NASDAQ:AVGO) carries a forward P/E of approximately 19x and a trailing P/E of 47x. Trailing P/E uses past earnings; forward P/E uses forecasts. Rapid AI-chip growth supports stronger earnings expectations. Fiscal 2026 third-quarter GAAP diluted EPS was $2.68, versus adjusted EPS of $3.