Broadcom signs ten-year VMware contract with NTT DOCOMO, shares edge higher
Broadcom signed a ten-year VMware agreement with NTT DOCOMO covering licenses and support, and its shares rose about 0.88% to $326.075 on October 23, per gurufocus.com.
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what happened
Broadcom has secured a ten-year deal with Japan's NTT DOCOMO for VMware software licenses, maintenance and technical support, according to gurufocus.com. The relationship goes back to 2019, and DOCOMO's private cloud runs on VMware Cloud Foundation.
The two companies intend to raise reliability and security, speed up deployments and get the platform ready for artificial intelligence workloads. Shares traded at $326.075 on October 23, up roughly 0.88% in late morning trading Eastern time on Friday. Financial terms were not disclosed, so the annual contract value and profit contribution remain unknown.
why it matters
The deal strengthens VMware's customer retention, but without disclosed terms it is hard to judge how much revenue or margin it will add. Next checkpoints include growth in infrastructure software, cash generation and the cost of supporting the contract over a decade. GurusFocus's valuation snapshot puts Broadcom about 24.74% below its $433.26 GF Value estimate, which points to possible undervaluation rather than guaranteed upside.
market impact
Broadcom and infrastructure software: a long-term VMware contract supports sentiment, but the deal size is undisclosed
tags
instruments
sources
- Broadcom Stocks Rise as Decade-Long VMware Deal Targets AI Workloads — gurufocus.com, 23 October 2026 at 19:08 UTC
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