Broadcom favors stock buyback over investing in innovation
common stock, dampening IT department hopes that it might invest in innovation or make its products more affordable.
Looking at the announcement of Broadcomm’s buyback plan, Scott Bickley, advisory fellow at Info-Tech Research Group, said this is consistent with Broadcom’s historic strategy and holds no good news for enterprise IT leaders.
“They shouldn’t expect any relief coming their way soon commercially,” Bickley said. “If they are planning a large capital spend on the server side, they shouldn’t be planning to exploit any cracks in the Broadcom armor.”
