Latest news with #VMware
Yahoo
3 days ago
- Business
- Yahoo
Broadcom (NasdaqGS:AVGO) Unveils VMware Cloud Foundation 9.0 Revolutionising Private Cloud Experience
Broadcom recently launched the VMware Cloud Foundation 9.0 platform, marking a significant advancement in their cloud infrastructure capabilities. The company's share price increased by 28% over the last quarter, and while the market itself was relatively stable, Broadcom's performance highlights its strong positioning with new product offerings. Financial results were robust, with impressive earnings growth and a strategic collaboration with NVIDIA bolstering AI solutions. These developments, alongside share buyback initiatives and dividend declarations, would have added weight to Broadcom's share price performance amidst broader market trends. We've spotted 2 warning signs for Broadcom you should be aware of. Uncover the next big thing with financially sound penny stocks that balance risk and reward. Broadcom's recent launch of the VMware Cloud Foundation 9.0 platform underscores its commitment to expanding cloud infrastructure capabilities. This advancement, along with key strategic developments such as the collaboration with NVIDIA and share buyback initiatives, could bolster revenue and earnings forecasts. With ongoing investments in AI and next-generation accelerators, Broadcom is positioning itself to potentially enhance technological leadership and sustained financial growth through increased revenue and margins. However, the reliance on a limited number of hyperscale customers introduces risk that these new ventures aim to mitigate. Over the past five years, Broadcom's total return, including share price and dividends, was very large, reaching 800.83%. While this represents a significant appreciation over the longer term, it's crucial to contextualize these gains against the market and industry. Over the past year, Broadcom has outperformed both the US Semiconductor industry and the broader US market, which returned 1.4% and 9.8% respectively. This demonstrates Broadcom's robust market presence and effective strategic initiatives that resonate well with investors. The current market sentiment is partially reflected in the company's share price, which saw a 28% rise last quarter. With an analyst consensus price target at US$280.41 and a current share price at US$200.09, the shares trade at a 16.1% discount to this target. This suggests that there could be potential upside based on analysts' growth expectations, assuming other risks are effectively managed. As analysts anticipate improved earnings and revenue growth, driven by AI-related initiatives, monitoring Broadcom's ability to actualize these forecasts will be essential for evaluating future performance. Examine Broadcom's earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AVGO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Globe and Mail
3 days ago
- Business
- Globe and Mail
Prediction: This Artificial Intelligence (AI) Stock Will Be Worth $2 Trillion in 3 Years
Broadcom (NASDAQ: AVGO) isn't the first company that comes to investors' minds when discussing mission-critical suppliers to the AI arms race. Companies like Nvidia and Taiwan Semiconductor Manufacturing are often mentioned, but Broadcom hovers in the background. However, Broadcom is a formidable company primed to benefit from a massive boom from two of its AI products. Although Broadcom is a $1.2 trillion company right now, I could easily see it rising to a $2 trillion company within three years. That would easily allow it to outperform the market, which makes it a fantastic option to consider now. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Broadcom makes two critical AI products that will dramatically grow in use Broadcom isn't top of mind for many investors because it isn't laser-focused on AI. It has products sprawling from mainframe software to cybersecurity to virtual desktops (thanks to its VMware acquisition). However, many of Broadcom's AI products are critical to data center infrastructure. Broadcom's AI offerings are split into two categories: connectivity switches and custom AI accelerators, which it calls XPUs. Starting with the connectivity switches, data centers have computing clusters with thousands of GPUs that constantly process AI workloads. Often, an AI prompt may require multiple GPUs to process the answer, and data centers need devices to stitch together the multi-piece answer. That's where Broadcom's connectivity switches come in, and they will only become more important as we transition into the next phase of AI. Although all AI hyperscalers are working on training better models, we're starting to see widespread usage of AI models in business and personal life. This means the AI hyperscalers must start thinking about inference, which occurs when an AI model is prompted for an answer. More inference capacity boosts the need for these connectivity switches, boosting Broadcom's sales. Another product that has Broadcom excited is its XPUs. Its custom AI accelerators are an alternative to GPUs, as they can also process multiple calculations in parallel. The difference between an XPU and a GPU is that XPUs are designed for a specific workload and don't have the flexibility of a GPU. Because these XPUs are designed in collaboration with the end user, the AI hyperscalers can tailor the processing unit to their workloads, optimizing these units for whatever workload they would like. This allows XPUs to outperform GPUs in specific use cases, but it also does something even more important for its clients. It cuts Nvidia out of the picture. It's no secret that the AI hyperscalers have a love-hate relationship with Nvidia, as Nvidia makes top-notch products but it charges an incredibly high premium for them. Nvidia's profit margin is over 50%, which is practically unheard of for a hardware company. So if clients can get the same performance out of their system without paying a significant chunk of money to fatten Nvidia's bottom line, they will do it. By purchasing XPUs, they only need to pay Broadcom a fraction of what they pay Nvidia, although Broadcom is still slated to make a ton of money from the design collaboration of these units. Broadcom's role in the AI world will only expand, but is this enough for its stock to nearly double in three years? Broadcom's revenue could double in the next three years In fiscal year 2024, Broadcom's total revenue was $51.6 billion. Of that, only $12.2 billion was AI-related revenue. AVGO Revenue (TTM) data by YCharts However, Broadcom expects its AI-related revenue to rapidly ramp up over the next few years, reaching $60 billion to $90 billion by FY 2027. Broadcom confirmed these expectations by stating that its AI semiconductor growth rate during 2025 will extend into 2026, which tracks perfectly with the $60 billion to $90 billion in AI-related revenue for FY 2027. If you subtract 2024's AI-related revenue from its total, Broadcom's total was $39.4 billion. Even if its base business doesn't grow, if you add that figure to the bottom end of the AI revenue guidance, you'd get a company that generates around $100 billion in annual revenue. That's the absolute low side of the projection, which indicates that there is a margin of safety in this projection. With revenue likely more than doubling from now until 2027 (its trailing-12-month revenue total is $57 billion), I'm fairly confident that the stock will at least double from now until then. That will be enough to vault Broadcom into the $2 trillion valuation level, making the stock a successful investment. Should you invest $1,000 in Broadcom right now? Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
3 days ago
- Business
- Yahoo
Broadcom Updates VMware Cloud Platform For Streamlined Operations
Broadcom (NASDAQ:AVGO) on Tuesday announced the general availability of VMware Cloud Foundation (VCF) 9.0, a private cloud platform that helps modernize infrastructure and accelerate cloud adoption. The platform simplifies hybrid cloud management, enhances security, and provides a consistent operating model across data centers and public clouds for faster application development and improved cost control. VMware Cloud Foundation 9.0 boasts a completely new architecture that empowers IT admins and application teams to accomplish far more and spend far less, the company said in a press platform delivers a streamlined experience for building, operating, and securing a modern private cloud across on-premises data centers, in hyperscaler and VMware Cloud Service provider clouds, and at the edge. Last December, JP Morgan analyst Harlan Sur projected upside for Broadcom, citing a strong demand profile for AI products, continued cyclical recovery in its diversified semiconductor (ex-AI) end markets, and unlocked VMWare revenue synergy. In the software infrastructure business, Sur noted continued strong momentum in VMware, based on strong software renewals with its large corporate customers. In the longer term, Sur noted over a $30 billion pipeline of AI revenue opportunities per AI customer over the next 4-5 years or over $150 billion in cumulative AI revenue opportunity. Broadcom reported second-quarter revenue of $15 billion, up 20%, beating analyst estimates of $14.99 billion. This was driven by continued momentum in AI semiconductor solutions and VMware. The semiconductor company also reported second-quarter adjusted earnings of $1.58 per share, beating analyst estimates of $1.56. The second-quarter AI revenue grew 46% to over $4.4 billion, driven by robust demand for AI networking. It expects growth in AI semiconductor revenue to accelerate to $5.1 billion in the third quarter, delivering ten consecutive quarters of growth, as its hyperscale partners remain invested in boosting their AI infrastructure. Price Action: AVGO stock is trading higher by 0.23% to $249.94 premarket at last check Wednesday. Read Next:Photo by Ken Wolter via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? BROADCOM (AVGO): Free Stock Analysis Report This article Broadcom Updates VMware Cloud Platform For Streamlined Operations originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
4 days ago
- Business
- Yahoo
Broadcom deploys souped up VMware private cloud
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Broadcom took the training wheels off VMware Cloud Foundation 9.0, making the private cloud virtualization software bundle generally available to customers Tuesday, the company said in an announcement. VCF 9.0, which the company teased last summer and put in public beta pre-release in April, was designed to provide the functionality of public cloud in an on-premises environment. The integrated platform includes a unified resource management interface, vSphere Kubernetes Service container capabilities and built-in cost analytics, as well as a suite of cloud-like add-on services, according to Broadcom. 'We've been on a journey to build this platform for the last seven years,' Broadcom VP of VMware Product Marketing Prashanth Shenoy said during a briefing last week. 'But in the last 18 months, we have taken a fundamental shift towards what is truly needed to make the operator experience, the developer experience frictionless, simple and done at scale.' VMware's private-cloud journey has been a tumultuous one, marked by Broadcom's $61 billion acquisition of the enterprise software provider and a major overhaul of the company's nearly ubiquitous product line. Broadcom telegraphed its intent shortly after the deal closed in November 2023. In short order, the chip manufacturing giant eliminated perpetual licensing in favor of subscription-based billing and packaged thousands of individual VMware offerings into four basic bundles. Many customers flinched at the cost. AT&T took Broadcom to court claiming it faced a 1,050% spike in its VMware bill but would require more than a year and investments of up to $50 million to migrate off the software. The two companies agreed to settle the dispute in November. VCF 5.2, the first iteration of the private cloud platform under Broadcom, arrived in June 2024, just two months before VMware announced plans for VCF 9.0. The rollouts paralleled a movement among enterprises to optimize public cloud spend and reconsider on-premises compute options. 'We are seeing a cloud reset happening in the market,' Shenoy said. 'Private cloud is now seen as the strategic equal of public cloud.' For current customers, the shift to VCF 9.0 is more like an upgrade than a migration, according to Shenoy. The platform includes built-in functions to import existing vSphere virtual servers, NSX virtual networks and vSAN storage environments, he said. The private cloud push has been a success. Broadcom CEO Hock Tan noted that the company had already converted 87% of its 10,000 largest VMware customers to VCF bundles, during an earnings call earlier this month. 'Broadcom wants customers to invest in VCF, and they've made it very attractive by creating a discounting and sales structure that heavily favors VCF and making it less attractive for you to buy anything else,' Gartner VP Analyst Tony Harvey said. Nevertheless, the bundled offering can be a lot for IT to swallow. Some CIOs would prefer the smaller vSphere Enterprise Plus package, Harvey said.'They've already got significant investments in external storage and they don't need VCF,' he added. For IT shops that are ready to go all-in on VCF, the investment may be worth it. 'If VMware is able to deliver on the promises or the roadmap that they set for themselves with VCF 9, it is going to be extremely good for the companies that continue with VMware,' Forrester Principal Analyst Naveen Chhabra said. However, Chhabra added, 'if VMware, with its erstwhile engineering workforce, was not able to make these integrations happen, how quickly is Broadcom going to be able to deliver on that promise?'
Business Wire
4 days ago
- Business
- Business Wire
VergeIO-Backed ESG Research Reveals Four Forces Driving Urgent Infrastructure Modernization
ANN ARBOR, Mich.--(BUSINESS WIRE)--New research sponsored by VergeIO and conducted by Informa TechTarget's Enterprise Strategy Group (ESG), titled Private AI, Virtualization, and Cloud: Transforming the Future of Infrastructure Modernization, reveals a dramatic shift in how organizations approach IT infrastructure strategy. The study, which surveyed 380 midmarket and enterprise IT professionals across North America, identified four primary forces accelerating the need for infrastructure modernization: virtualization market disruption, rising cloud costs, the operational impact of AI, and a persistent shortage of skilled IT personnel. According to ESG, 54% of organizations are actively investigating or planning to replace their primary hypervisor, a significant figure given VMware's historically dominant market share. The study also shows that 76% of organizations are re-evaluating their cloud strategies in response to cost pressures, and more than 60% are actively scaling their infrastructure to support on-premises AI initiatives. 'These four pressures are converging at a time when IT teams are already stretched thin,' said Scott Sinclair, Practice Director at ESG. 'What organizations need now is not just a cloud-like experience or an alternative to legacy vendors—they need simplicity, predictability, and architectural leverage. Solutions like VergeOS are designed to deliver exactly that.' The findings align with VergeIO's latest white paper, Four Forces Accelerating Infrastructure Modernization, which explores how organizations are compressing their IT planning horizons in response to these external pressures. The paper positions VergeOS as a unified software-defined platform capable of replacing legacy virtualization stacks, reducing complexity, and enabling both traditional and AI workloads within the same environment. 'Most organizations don't have the luxury of rebuilding from scratch, and they can't afford to wait,' said Yan Ness, CEO of VergeIO. 'VergeOS was designed to meet this moment. It eliminates silos, simplifies operations, and restores control—without forcing customers into disruptive re-platforming.' VergeIO was one of the sponsors of the ESG research, which is available now exclusively from VergeIO to industry leaders exploring modernization options. The company will be hosting a webinar on June 26th at 1:00 PM ET, featuring Scott Sinclair and George Crump in a live discussion on the future of data center infrastructure. Register here: About VergeIO VergeIO is the leader in ultra-converged infrastructure, delivering a unified software platform—VergeOS—that replaces traditional virtualization, storage, and networking layers with a single data center operating system. VergeOS is the leading VMware alternative, offering a flat, software-defined architecture that simplifies IT operations while improving scalability and control. From core to edge to private AI environments, VergeOS simplifies infrastructure and accelerates innovation. About ESG Enterprise Strategy Group (ESG), a division of TechTarget, is a leading industry analyst and research firm that delivers actionable market intelligence and custom research for the enterprise technology sector.
