Latest news with #Broadcom
Yahoo
6 hours ago
- Business
- Yahoo
Magnificent 7 May Need to Make Room for Broadcom
Broadcom joined the trillion-dollar club late last year, and its market value has continued to climb since. The software and chip company has been riding the AI wave as companies like Alphabet and Meta place orders for its custom AI chips. The tech giant's stock doubled in each of the past two years, climbing more than 350% from the start of 2023 to yesterday's close. With a $1.2 trillion market cap, Broadcom is the S&P 500's seventh-most-valuable company, worth more than either Walmart or Berkshire Hathaway. Broadcom's skyrocketing value has some Wall Streeters wondering whether it's time for a shakeup of the Magnificent Seven, which currently includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. READ ALSO: OpenAI Careens Toward Messy Divorce From Microsoft and Drones Steal the Paris Air Show Analysts expect Broadcom's sales to soar 22% this fiscal year and 21% in 2026. Broadcom reported earnings earlier this month that topped analysts' estimates after raking in $15 billion in revenue in its most recent quarter. Nvidia is the only company in the Magnificent Seven whose sales growth surpasses Broadcom's. In contrast, Tesla's revenue has contracted 1% this year, and its shares have tanked. The automaker's market cap is just above the $1 trillion mark. Four of the companies in the Magnificent Seven have seen their shares fall this year. Meanwhile, Broadcom's business is booming, especially its AI arm: Broadcom has a sprawling empire of technology that ranges from Wi-Fi and Bluetooth chips to cybersecurity software, but its custom AI chips now make up nearly a third of its revenue. The tech company made $4.4 billion of its revenue from AI in the second quarter (a 60% annual uptick) and expects $5.1 billion next quarter as cloud providers like Alphabet place more orders. The company predicts AI growth will continue next year. Name Games: The Magnificent Seven is a way of grouping together some of the S&P 500's most influential companies, similar to its predecessor FAANG (made up of Facebook, Amazon, Apple, Netflix, and Google before Facebook and Google changed their names). But some experts say the purpose of these groupings is to track trends, not just the most valuable companies. If the trend investors are eyeing now is AI, then swapping Tesla out for Broadcom may not make sense since Tesla is also leveraging AI (for robotaxis and humanoid robots). Another option might be to simply expand the Magnificent 7 to a Magnificent 8. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
15 AI stocks to watch outside of the Magnificent 7
Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run. Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street. But, my next guest has some alternative ways to play artificial intelligence. I'm going to bring in Dan Newman who is the Futurum CEO. Great to have you here back in studio with us. Hey Brad, good to see you. So, let's talk about this because a lot of people have already piled into Mag 7, but you believe that there are other places that are non Mag 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years. Yeah, I mean there's been nothing that has, you know, deemed more attention than AI. You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, meta offering hundreds of millions of dollars to potential researchers to join their AI talent team. Or, you know, you saw Marvell came out yesterday with the custom AI Silicon roadmap and their stock is popping, we'll probably talk a little bit about that. Um, but you're seeing it really across the board. And then of course so many people have kind of felt like, well, did I miss Nvidia? And so the the question I get asked most by, you know, by clients, by the by retail investors and why we basically launched the Futurum AI 15, which is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and meta? What are the plays, you know? And so, you hear about kind of what are the difference difference makers? So for instance, uh, companies like Avago, you know, Broadcom. Um, you know there's a $500 billion TAM, we believe, in the next four years for custom AI Silicon. Yeah. Um, Nvidia's going to get a lot of that, you know, Nvidia gets 92% of that market right now, we believe. Right. But they're not going to keep 92% in our opinion. They're probably going to fall to maybe 80%, 70%. So it still means Nvidia, by the way, can triple to $300 billion. There's going to be $100 billion that's going to go into custom. And so we have Avago, for instance, at as our number two name to play, because that $100 billion opportunity, that sits with the Google custom chips they're doing, sits with custom chips that companies like Open AI are planning to do. So that's one of the plays. Of course, you're seeing, uh, Brad, TSMC. TSMC, you know, people think about it as a foundry, and of course, it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's Nvidia making chips, meta making chips, Microsoft, and Amazon doing their custom chips, all of them are dependent right now on TSMC. And as much as I think the US needs a strong Intel, we aren't there yet. So, right now, TSMC has all the pricing power. So it sits at the very top of our list. And then there's some eclectic names, I'll pause here, but basically there's eclectic names like Oracle, that we put on there. You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they're in a perfect position. And just yesterday, XAI and Oracle made a big announcement together that they're going to be using X Oracle's infrastructure to train XAI models. Right.
Yahoo
a day ago
- Business
- Yahoo
Citi Identifies Broadcom as a Reliable Stock for Strong Upcoming Profits
Broadcom Inc. (NASDAQ:AVGO) is one of Best Dividend Stocks to Buy for Dependable Dividend Growth. The stock was recently added to Citi's updated 'Positive ROE Trend' stock basket, an index of companies expected to see rising return on equity (ROE), largely fueled by improved margins or enhanced efficiency, as measured by total asset turnover, according to strategist Scott Chronert. A technician working at a magnified microscope, developing a new integrated circuit. Citi Research noted that high-quality companies generating strong returns are becoming increasingly difficult to find. Chronert explained in a client note that ROE, which is a measure of profitability calculated by dividing net income by shareholders' equity, is 'increasingly scarce' among large-cap stocks. Still, Citi believes Broadcom Inc. (NASDAQ:AVGO) stands out as a reliable profit generator. The company is projected to achieve an ROE of over 43% by the end of 2026, marking a sharp increase from current levels. The stock has jumped approximately 51% this quarter and is up by over 7% year to date. Broadcom Inc. (NASDAQ:AVGO)'s CEO recently stated that the firm expects its AI-related revenue growth in fiscal 2025 to 'sustain into fiscal 2026,' driven by continued strong demand for its custom AI chips and networking products. Broadcom Inc. (NASDAQ:AVGO)'s dividend policy is also very strong, as the company has been rewarding shareholders with growing dividends for the past 14 years. It pays a quarterly dividend of $0.59 per share for a dividend yield of 0.95%, as of June 17. Broadcom Inc. (NASDAQ:AVGO) is a global tech firm that designs, develops, and delivers a broad portfolio of semiconductor and infrastructure software products. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Broadcom, Nvidia Tapped for AI's Next Big Wave in Optical Chips
June 19 The rise of artificial intelligence is likely to accelerate adoption of co-packaged optics, benefiting a broad swath of chip and component suppliers including Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA), according to a note from J.P. Morgan on Wednesday. Co-packaged optics, or CPO, integrates optical and silicon components on a single substrate to address growing challenges in bandwidth, power efficiency, and cost. The technology, once viewed as a long-term bet, is now drawing more attention due to AI-related infrastructure demands, the analysts said. J.P. Morgan's Samik Chatterjee said that while technical obstacles such as thermal management and serviceability remain, progress on those fronts and the strain on existing technologies have started to shift sentiment toward CPO. Commercial traction may begin earlier than expected, with market value projected to exceed $5 billion by 2030. The firm sees multiple beneficiaries of this trend, including Advantest (ATEYY), ASMPT (ASMVF), Coherent (COHR), Corning (NYSE:GLW), Fabrinet (NYSE:FN), Lumentum (NASDAQ:LITE), Marvell Technology (NASDAQ:MRVL), Taiwan Semiconductor (NYSE:TSM), United Microelectronics (NYSE:UMC), and Cisco Systems (NASDAQ:CSCO), which is ramping investments. Despite disruption fears, existing optical suppliers are still expected to play a central role in the CPO ecosystem, according to the analysts. This article first appeared on GuruFocus.
Techday NZ
2 days ago
- Business
- Techday NZ
Broadcom launches VMware Cloud Foundation 9.0 to boost private AI
Broadcom has announced the general availability of VMware Cloud Foundation 9.0, a new version of its private cloud platform offering enhanced management for traditional, AI, and cloud-native applications. The latest iteration of VMware Cloud Foundation (VCF) is designed to provide a consistent operating model for private cloud deployments, supporting a range of environments including data centres, edge locations, and managed infrastructure from both service providers and hyperscalers. According to Broadcom, VCF 9.0 combines features commonly associated with public cloud—such as agility and scalability—with the security, performance, and governance advantages of on-premises solutions. This release comes amid a shift in cloud strategies across Australia, with many organisations re-evaluating their reliance on public cloud platforms because of concerns about security, cost management, and data governance. Broadcom's Private Cloud Outlook 2025 report indicates that 67% of enterprises in the region are planning to repatriate workloads from public to private clouds, with one third already in the process of doing so. Platform features VCF 9.0 introduces a unified platform capable of running a range of application types—traditional, cloud-native, and AI—while maintaining consistent operations and controls. The platform is aimed at accelerating innovation by providing out-of-the-box self-service and streamlined deployment options, enabling development teams to focus on applications rather than infrastructure. Cost control is addressed through tools delivering deep visibility into resource usage. These allow for improved planning, predictive management, and optimisation of cloud expenditure. Enhanced support for sovereignty and security includes improved compliance functionality, cyber resilience at scale, and fleet-level management for rapid patch deployment and updated security controls. "With this next generation of our cloud platform, VMware Cloud Foundation 9.0, we are again raising the bar for the modern private cloud by vastly simplifying the deployment, operations, and developer experience of the cloud," said Krish Prasad, Senior Vice President and General Manager, VCF Division, Broadcom. "Most enterprises are now looking to the private cloud to run both traditional mission-critical and new AI and containerized applications. VMware Cloud Foundation 9.0 is the ideal platform for running these modern applications, enabling our customers to be more innovative, efficient, resilient, and secure. We are very excited to see that customers of all sizes are embracing VCF at a rate that has exceeded even our own high expectations." Customers have highlighted the operational efficiencies provided by the latest VCF platform. Roger Joys, Principal Technology Strategy Advisor, Cloud & Data at GCI Communications, said, "VMware Cloud Foundation has enabled us to execute on our private cloud strategy by breaking down IT silos, removing technical debt, and allowing teams to shift from focusing on keeping the lights on to higher value projects that move our business forward. By delivering an 'everything as code' private cloud platform, we simply do everything faster and more securely now. Security patches are easier to implement, new applications are deployed in minutes rather than months, and services are updated and rolled out to customers in a fraction of the time. These are all benefits people only thought were possible in the public cloud. We are doing these things in our modern private cloud." Paolo Bazzica, Chief Information Officer at IPZS, described the use of VCF at the institution: "VMware Cloud Foundation is at the core of our Digital Application Platform. Using VCF, we have expanded our on prem delivery capabilities while improving operational efficiency. At IPZS, we feel that we are now on the right track to continue supporting Italy's digital transition with a modern private cloud that enables full use of our competences to deliver cloud native applications. Compared to more traditional on-prem setup, we saw a steep IT manual tasks reduction by up to 70% through automation while improving our business resilience." Additional feedback on the new platform came from Michael Heier, Head of Managed Workplace at Ratiodata, who noted, "With VMware Cloud Foundation, we can offer our customers a private cloud operating model from our own data centre. VCF offers a significantly more flexible and easier-to-manage IT infrastructure with its automation, advanced security features, dynamic networking capabilities, and comprehensive cloud management. VMware vSphere Kubernetes Service enables us to deliver a unified platform for both VM and containerized apps, while VMware Private AI allows us to securely harness AI capabilities across this infrastructure. Increased server performance and superior VM density will reduce our total number of servers, lowering power consumption and costs by an estimated 25–30%." Keith Woolley, Chief Digital and Information Officer at the University of Bristol, also commented, "Previously we had a large-scale legacy IT infrastructure that needed to evolve into something that was very agile, flexible, cost-optimized and secure. With VMware Cloud Foundation, University of Bristol has built a modern private cloud that completely revolutionizes the way we operate and deliver services to our academic community. VCF enables us to run our AI jobs. It gives us the sovereignty we were seeking. And we know there's hidden benefits in the VCF platform that we're only just starting to discover." Technological improvements VCF 9.0 introduces a redesigned architecture aimed at reducing friction between IT administrators and application teams. Features include a single user interface for private cloud operations, the Quick Start App for streamlined setup, integrated cost management, centralized identity and access controls, consolidated log management, and advanced analytics for workload monitoring and optimisation. The update includes enhanced automation options and role-based access, aiming to simplify both administration and deployment of infrastructure resources. Support for mixed workloads is expanded by allowing both virtual machines and containers to be managed using the embedded vSphere Kubernetes Service, allowing simplified operations and security policy enforcement across different types of applications. Key cost management capabilities include in-depth analytics for infrastructure forecasting, dynamic resource optimisation, and automated showback and chargeback features for tracking infrastructure spend. Security and regulatory compliance are addressed through the introduction of a SecOps dashboard and support for confidential computing features from AMD and Intel, helping organisations to deploy secure workloads across various infrastructure environments. Advanced services and ecosystem partnerships Broadcom is offering new and updated advanced services for the VCF platform, such as VMware Private AI Foundation with NVIDIA, VMware Live Recovery, VMware vDefend, VMware Data Services Manager, and Avi Load Balancer. These services address areas like enterprise AI, disaster recovery, threat detection, database as a service, and load balancing for cloud-native workloads. Industry partners have commented on the launch. Raghu Nambiar, Corporate Vice President, Silicon Design Engineering, AMD, said, "AMD and VMware continue to push the boundaries of enterprise infrastructure. The latest release of VMware Cloud Foundation 9.0 builds on our shared vision to deliver solutions with great performance, exceptional total cost of ownership, and advanced security with AMD EPYCTM processors featuring SEV-SNP. Customers can confidently and efficiently scale modern workloads—from virtualization to AI—across secure hybrid cloud environments." Brett Tanzer, Vice President, Product Management for the Azure Solutions and Ecosystem Team, stated, "Azure VMware Solution (AVS) is a fully managed VCF service that provides customers the flexibility to combine VMware Cloud Foundation private clouds with the scale and flexibility of Azure. As customers adopt the latest innovations in VMware Cloud Foundation 9.0, they will be able to take advantage of Microsoft's support for VCF license portability to extend VMware workloads to Azure as is, with minimal to no refactoring, and benefit from the continuity, scale, and fast provisioning for VMware workloads on global Azure infrastructure." Gil Shneorson, Senior Vice President, Solutions Platform, Dell Technologies, said, "As organizations face increasing demands for data security, control and scalability, they're turning to Dell Technologies to help them easily build private cloud environments. VMware Cloud Foundation 9.0 on Dell infrastructure will deliver a private cloud solution that eliminates IT silos, reduces risk and boosts operational efficiency." Nirav Mehta, Vice President, Product Management, Google Cloud, also commented: "Our strong partnership with Broadcom is key to delivering the latest VMware innovations on Google Cloud. With VMware Cloud Foundation 9.0, we're particularly excited about the unified interface for private cloud operations, which streamlines management, and the frictionless cloud consumption experience, which empowers both platform and development teams. We look forward to bringing these advanced capabilities and more to Google Cloud VMware Engine, further enabling our customers to accelerate innovation and optimize their cloud environments." Rajeev Bhardwaj, Vice President and Chief Product Officer, Private Cloud and Flex Solutions, HPE, said, "As enterprises embrace hybrid operating models, IT teams are under increasing pressure to modernize infrastructure without adding complexity or compromising on security and resilience. HPE GreenLake for VMware Cloud Foundation with VCF 9.0 will offer a co-engineered, validated solution with flexible consumption, multi-layered security and pre-integrated technology—all designed to streamline an organization's private cloud journey." Greg Ernst, CVP, Sales and Marketing Group, Intel Corporation, added, "VMware Cloud Foundation 9.0 on Intel Xeon 6 platforms brings new levels of cost optimization and advanced security to the modern private cloud. With greater hardware consolidation and Intel TDX enabling confidential computing, our mutual customers can lower total cost of ownership, enhance trust and data protection, and accelerate their AI adoption." Stuart McRae, Executive Director and General Manager, Data Storage Solutions, Lenovo ISG, commented, "Lenovo ThinkAgile VX Series, a co-engineered solution with VMware Cloud Foundation, enables enterprises to implement a hybrid cloud environment using a turnkey solution for faster deployments, seamless lifecycle management and full-stack monitoring with Lenovo XClarity. Built on trusted Lenovo servers that are reliable and secure, this workload-ready solution is tested, optimized and validated for compliance to handle various workloads, including demanding AI projects. With VCF 9.0, Lenovo will offer customers a unified platform for all applications, blending public cloud agility with on-premises security and resilience." John Fanelli, Vice President, Enterprise AI Software at NVIDIA, said, "Enterprises building AI factories need solutions for integrating AI into the heart of their operations. VMware Private AI Foundation with NVIDIA fast-tracks enterprise AI deployments with a secure, full-stack platform for building, customizing and running AI models, agents and applications."
