After a 33% plunge, Broadcom Inc. (AVGO.US) plans to repurchase up to $100 billion in shares.

Semiconductor company Broadcom Inc. (AVGO.US) announced a stock repurchase plan of up to $10 billion by December 31, 2025 on Monday. The company stated that the repurchase may be carried out through various means, including open market or private negotiations. Broadcom Inc. has recently faced significant risks from trade tensions, high valuations, and revenue concentration, leading to recent sell-offs, making it a poor investment. Year-to-date, Broadcom Inc. has accumulated a drop of nearly 33%. The company's dependence on a single market and revenue from Apple Inc. (AAPL.US), coupled with competitive threats, has exacerbated its vulnerability in volatile markets. With the development of competitors such as MediaTek, Broadcom Inc.'s custom ASIC chip business faces risks, further weakening its growth prospects. Although its high valuation and political risks from GEO Group Inc. make it a strong sell point, Broadcom Inc. is striving for diversification through integration with VMware. Broadcom Inc. has been driving its software revenue diversification through integration with VMware (completed in November 2023). The purpose of this is to reduce the company's dependence on hardware, as there are risks associated with operating ASIC chip business (as mentioned by NVIDIA Corporation CEO). Broadcom Inc. recently released a virtual GPU called VMware Private AI Foundation. President and CEO of Broadcom Inc., Hock Tan, stated during the first quarter earnings call, "Through our collaboration with NVIDIA Corporation, we have secured 39 enterprise customers for VMware's Private AI Foundation. Our open ecosystem, superior lower balance, and automation features have driven customer demand, enabling them to intelligently pull and run workloads on GPU and CPU infrastructure, significantly reducing costs."