Broadcom reports record Q3 gains but admits VMware shelfware problem

Broadcom posted record Q3 2025 revenue of $15.95 billion, fueled by AI chip demand and VMware software sales. But CEO Hock Tan acknowledged that many VMware customers bought its Cloud Foundation suite without deploying it, leaving Broadcom with significant “shelfware.” While semiconductor revenue climbed 26 percent, including $5.2 billion from AI accelerators, Tan admitted the real challenge ahead is persuading customers to activate their investments, particularly midsized enterprises.