Latest news with #VMware
Globe and Mail
an hour ago
- Business
- Globe and Mail
Broadcom's Big VMware Update: A Threat to Public Cloud Giants?
Most of the hype around Broadcom (NASDAQ: AVGO) centers on its custom AI chips, which have generated rabid demand among several hyperscale customers. The company has positioned itself as both a complement and a competitor to chip giant NVIDIA (NASDAQ: NVDA). However, investors cannot overlook the success of Broadcom's VMware acquisition and should consider its future potential. In its own right, the purchase has been a major factor in driving Broadcom's rising share price. Since completing the acquisition of VMware in November 2023, Broadcom stock has achieved a total return of about 179% as of the June 25 closing price. Now, Broadcom has announced its biggest update to VMware to date. On June 17, Broadcom announced the availability of VMware Cloud Foundation 9.0 (VCF 9). So, does VCF 9 have the potential to drive the next wave of growth in Broadcom's software sales and lead to a rally in the share price? This analysis will break down VCF 9 and examine what industry experts say about it to answer this question. The Private Cloud and VCF 9: Broadcom's Massive Update VCF 9 is Broadcom's next-generation private cloud platform. When delivering services and performing internal operations, companies have traditionally had two options: using a private or public cloud. Microsoft (NASDAQ: MSFT) Azure is a good example of a public cloud environment. Companies that run on a public cloud share computing resources owned by another firm, such as Microsoft, when they send in requests. Microsoft's clients share these resources, which process requests. This sharing of resources makes data privacy a concern when using a public cloud. Private clouds address this, as computing resources are not shared under this model. Organizations that handle sensitive information, like banks, healthcare companies, and governments, can benefit from the enhanced security offered by private clouds. VCF 9 itself offers significant benefits over VMware's past offerings. This includes combining previously separate products under one unified platform. Before, IT teams had to manage these products separately, creating inefficiency. Furthermore, many processes that previously needed manual adjustment are now automated. Broadcom says this allows IT teams to increase daily productivity by up to ten times. These features help IT teams spend less time managing resources. They can focus more on adding value by building and improving applications. This is significant, as it can allow companies to focus on revenue generation rather than maintaining the status quo. Analysts Praise VCF 9, but Angry Customers May Still Leave Multiple industry analysts spoke highly of VCF 9. Matt Kimball of Moor Insights & Strategy noted that VCF 9's automation features are critical. This is because IT teams are seeing their resources and budgets reduced, making increased efficiency key. International Data Corporation (IDC) analyst Gary Chen said VCF 9's new features are 'impressive' and called the release Broadcom's 'Big Bang." Jerome Wendt, CEO and principal analyst at Data Center Intelligence Group, observes a ' pretty sizable gap ' between VCF and its closest private cloud rivals. Because VCF 9's capabilities are highly advanced, Broadcom could go after bigger fish. It positions it as a competitor to public cloud providers, not just private cloud ones. However, Scott Sinclair, an analyst at Enterprise Strategy Group, doubts that VCF 9 will make existing customers less likely to leave. Sinclair believes that organizations have already decided whether to stick with or leave VMware after Broadcom's acquisition. Updates like VCF 9 are unlikely to change their calculus. However, Broadcom may be just fine with that. Customers have shared many complaints about Broadcom's switch to a more expensive subscription model for VMware. Yet, VMware continued to see customers transitioning to its subscription model last quarter. VCF 9 Could Position Broadcom to Take Public Cloud Business Overall, VCF 9 is a significant upgrade over Broadcom's past offerings. It further cements Broadcom as the preeminent private cloud provider. The company's market share here doesn't seem to be under threat. In the best-case scenario, VCF 9's new automation and cost control features might attract customers from public cloud companies. That would be big for Broadcom. However, VCF 9 is still in its very early stages. Future earnings calls may reveal whether this actually happens, and whether VCF 9 can help drive the stock higher. Still, the generally positive reception of VCF 9 makes it likely that it will be a net positive for Broadcom regardless. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. 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Yahoo
an hour ago
- Business
- Yahoo
Broadcom Launches VMware Cloud Foundation 9.0 for Unified Private Cloud Management
Broadcom Inc. (NASDAQ:AVGO) ranks among the best FAANG stocks to buy according to hedge funds. On June 17, Broadcom Inc. (NASDAQ:AVGO) announced that VMware Cloud Foundation (VCF) 9.0, a platform made for contemporary private cloud environments, was now generally available. The company claims that the new platform offers a uniform operating paradigm for private cloud across edge computing, data centers, and managed cloud infrastructure from hyperscalers and service providers. Platform and development teams will now be able to have a more efficient experience with VCF 9.0, which also offers a uniform interface for cloud managers. The platform supports traditional, cloud-native, and artificial intelligence applications through the incorporated vSphere Kubernetes Service, which allows virtual machines and containers to be managed together. Additionally, the platform incorporates improvements to Broadcom Inc. (NASDAQ:AVGO)'s advanced services portfolio, including VMware Live Recovery, VMware vDefend, VMware Data Services Manager, VMware Private AI Foundation with NVIDIA, and Avi Load Balancer. Broadcom Inc. (NASDAQ:AVGO) is a multinational semiconductor company specializing in the design, development, and distribution of a wide range of 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 More: 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
a day ago
- Business
- Yahoo
Veteran analyst issues big Broadcom call, shakes up AI stock race
Veteran analyst issues big Broadcom call, shakes up AI stock race originally appeared on TheStreet. It's no secret that Nvidia's () shiny GPUs have stolen the spotlight as AI's headline act. However, behind the hype, AI-infrastructure players like Broadcom () offer the secret sauce, keeping it all running. 💵💰💰💵 That behind-the-scenes position may seem boring on paper, but it's mission-critical in running AI at scale. Every flashy ChatGPT, Gemini, Grok, or Claude needs invisible, bulletproof infrastructure to work at scale. That's where Broadcom comes in, which makes it quietly indispensable. You could potentially swap GPUs, but good luck swapping out the entire integrated stack that Broadcom pieces together. Moreover, analysts have taken note in a big way, especially as Broadcom stock continues to deliver earnings stunners quarter after quarter. Broadcom isn't dishing out the flashy GPUs that make it's involved in the boring plumbing that keeps the AI boom flowing. Everything from custom silicon to swift optical interconnects, powerful networking, and the VMware software glue that ties everything together. While Nvidia soaks up the bulk of the spotlight, Broadcom quietly powers AI's backbone. Hyperscalers like Google and Meta rely on Broadcom's custom ASICs instead of off-the-shelf GPUs. These chips specifically target massive inference workloads, cutting power use and reducing costs. Moreover, it's not just hardware that Broadcom targets. Broadcom's VMware integration turns its platform into a plug-and-play AI stack. Virtual GPU sharing, smart resource management, and deep monitoring are all built in, with that combo killing the headaches that pure GPU stacks can't handle alone. Consequently, Broadcom's infrastructure software sales skyrocketed to $21.5 billion last year, triple the year before. Also, its 3.5D packaging and optical tech pack racks are tighter than those of any traditional GPU farm, significantly boosting performance and efficiency. More Tech Stock News: Circle's stock price surges after stunning CEO comment Veteran Wall Street firm makes surprise call on tech stocks Gemini, ChatGPT may lose the AI war to deep-pocketed rival Layer that up with Broadcom's 'buy-integrate-optimize-rebuy' playbook, which locks in multi-year deals with cloud giants, and you have its free cash flow surging. HSBC's Frank Lee just boosted his price target on Broadcom stock from $240 to $400, a 66.7% hike, and upgraded it to a cites the incredible potential of Broadcom's custom ASIC chips, saying sales should 'significantly beat market expectations' due to healthy pricing power and a clearer pipeline from major hyperscalers. It's important to note that HSBC wasn't always this bullish. Earlier this year, it worried about Apple potentially eating into Broadcom's wireless share. In a stunning turnaround, the fresh target nearly doubles the old one, flipping the script and highlighting the depth of Broadcom's VMware integration and its edge in AI chip infrastructure. Similarly, Broadcom stock is now firmly on UBS's radar as one of the top 10 AI stocks investors are watching. UBS kept a Buy rating on both Nvidia and Broadcom, calling them big winners as AI demand continues to boom. Broadcom stock was on a roll last week, surging more than 6% as it opened Monday, June 23, at $253.77 and closed Friday at $269.35. It comes into this week trading near its 52-week peak of $271.85, up almost 8% over the past seven days. Also, its 30-day gain of 12.8% and year-to-date jump of 16.8% highlight steady momentum. A lot of that is down to another stunning second-quarter earnings print. On June 6, Broadcom reported Q2 revenues of $15.0 billion, beating the consensus by 0.4%, while representing a 20% year-over-year jump. Adjusted EPS climbed to 44% to $1.58, nudging past the $1.57 estimate. The AI segment shone the brightest with AI-driven chip and networking revenue rising an incredible 46% to $4.4 billion. Those numbers were mostly driven by hyperscaler orders and marked its 10th straight quarter of double-digit AI growth. Infrastructure software sales were up 25% to $6.6 billion, on the back of healthy VMware subscription conversions. The company management guides for Q3 revenue of $15.8 billion and models a 60% rise in AI semiconductor sales. That confidence shows that AI tailwinds will continue driving top-and bottom-line expansion for the foreseeable analyst issues big Broadcom call, shakes up AI stock race first appeared on TheStreet on Jun 30, 2025 This story was originally reported by TheStreet on Jun 30, 2025, where it first appeared. 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
Here Is What You Need To Know Before Investing In Broadcom Inc. (AVGO)
Broadcom Inc. (NASDAQ:AVGO) is among the Goldman Sachs Stock Portfolio: 10 Large-Cap Stocks To Buy. The stock has had impressive returns over the past month, gaining 14.30% during the period, as of June 27. A technician working at a magnified microscope, developing a new integrated circuit. On June 5, the company reported second-quarter earnings that beat Wall Street expectations. Broadcom Inc. (NASDAQ:AVGO) also provided robust guidance for the third quarter, betting on strong demand for its chips. It has forecast a revenue of $15.80 billion for Q3, above the analysts' average estimate of $15.71 billion and 21% higher year-over-year. Following the earnings call, several firms lifted the outlook for Broadcom Inc. (NASDAQ:AVGO), which has also strengthened investor sentiment. This included Benchmark, which raised the stock's price target to $315 from $255 while maintaining a Buy rating for the company's shares. Barclays has also hiked the stock's price target to $265 from $215 and reiterated the earlier Overweight rating. Broadcom Inc. (NASDAQ:AVGO) recently announced the general availability of VMware Cloud Foundation (VCF) 9.0, a platform for contemporary private cloud environments, which is set to accelerate innovation, control cloud costs, and enhance data control to enable security and sovereignty. Broadcom Inc. (NASDAQ:AVGO) is a global technology company specializing in the design, development, and distribution of semiconductors, enterprise software, and security solutions. 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
Miami Herald
2 days ago
- Business
- Miami Herald
Veteran analyst issues big Broadcom call, shakes up AI stock race
It's no secret that Nvidia's (NVDA) shiny GPUs have stolen the spotlight as AI's headline act. However, behind the hype, AI-infrastructure players like Broadcom (AVGO) offer the secret sauce, keeping it all running. Don't miss the move: Subscribe to TheStreet's free daily newsletter That behind-the-scenes position may seem boring on paper, but it's mission-critical in running AI at scale. Every flashy ChatGPT, Gemini, Grok, or Claude needs invisible, bulletproof infrastructure to work at scale. That's where Broadcom comes in, which makes it quietly indispensable. You could potentially swap GPUs, but good luck swapping out the entire integrated stack that Broadcom pieces together. Moreover, analysts have taken note in a big way, especially as Broadcom stock continues to deliver earnings stunners quarter after quarter. Broadcom isn't dishing out the flashy GPUs that make headlines. Related: Veteran analyst drops bold new call on Nvidia stock Instead, it's involved in the boring plumbing that keeps the AI boom flowing. Everything from custom silicon to swift optical interconnects, powerful networking, and the VMware software glue that ties everything together. While Nvidia soaks up the bulk of the spotlight, Broadcom quietly powers AI's backbone. Hyperscalers like Google and Meta rely on Broadcom's custom ASICs instead of off-the-shelf GPUs. These chips specifically target massive inference workloads, cutting power use and reducing costs. Moreover, it's not just hardware that Broadcom targets. Broadcom's VMware integration turns its platform into a plug-and-play AI stack. Virtual GPU sharing, smart resource management, and deep monitoring are all built in, with that combo killing the headaches that pure GPU stacks can't handle alone. Consequently, Broadcom's infrastructure software sales skyrocketed to $21.5 billion last year, triple the year before. Also, its 3.5D packaging and optical tech pack racks are tighter than those of any traditional GPU farm, significantly boosting performance and efficiency. More Tech Stock News: Circle's stock price surges after stunning CEO commentVeteran Wall Street firm makes surprise call on tech stocksGemini, ChatGPT may lose the AI war to deep-pocketed rival Layer that up with Broadcom's 'buy-integrate-optimize-rebuy' playbook, which locks in multi-year deals with cloud giants, and you have its free cash flow surging. HSBC's Frank Lee just boosted his price target on Broadcom stock from $240 to $400, a 66.7% hike, and upgraded it to a Buy. Related: Veteran Tesla bull drops surprising 3-word verdict on robotaxi ride Lee cites the incredible potential of Broadcom's custom ASIC chips, saying sales should "significantly beat market expectations" due to healthy pricing power and a clearer pipeline from major hyperscalers. It's important to note that HSBC wasn't always this bullish. Earlier this year, it worried about Apple potentially eating into Broadcom's wireless share. In a stunning turnaround, the fresh target nearly doubles the old one, flipping the script and highlighting the depth of Broadcom's VMware integration and its edge in AI chip infrastructure. Similarly, Broadcom stock is now firmly on UBS's radar as one of the top 10 AI stocks investors are watching. UBS kept a Buy rating on both Nvidia and Broadcom, calling them big winners as AI demand continues to boom. Broadcom stock was on a roll last week, surging more than 6% as it opened Monday, June 23, at $253.77 and closed Friday at $269.35. It comes into this week trading near its 52-week peak of $271.85, up almost 8% over the past seven days. Also, its 30-day gain of 12.8% and year-to-date jump of 16.8% highlight steady momentum. A lot of that is down to another stunning second-quarter earnings print. On June 6, Broadcom reported Q2 revenues of $15.0 billion, beating the consensus by 0.4%, while representing a 20% year-over-year jump. Adjusted EPS climbed to 44% to $1.58, nudging past the $1.57 estimate. The AI segment shone the brightest with AI-driven chip and networking revenue rising an incredible 46% to $4.4 billion. Those numbers were mostly driven by hyperscaler orders and marked its 10th straight quarter of double-digit AI growth. Infrastructure software sales were up 25% to $6.6 billion, on the back of healthy VMware subscription conversions. The company management guides for Q3 revenue of $15.8 billion and models a 60% rise in AI semiconductor sales. That confidence shows that AI tailwinds will continue driving top-and bottom-line expansion for the foreseeable future. Related: Analyst reboots AMD stock price target on chip update The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
