Broadcom

Broadcom enjoys high margins (~63% gross in 2024) reflecting strong pricing in specialized chips and software. Its products (custom AI ASICs, networking chips, virtualization licenses) are mission-critical, allowing the firm to raise prices with limited churn.

For example, Broadcom sharply increased VMware licensing fees, initially drawing customer backlash (even regulatory attention), yet demand held. Overall, the company’s high-value, few-alternative products give it substantial pricing power.