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 release.
Also Read: Synopsys, Broadcom Team Up To Accelerate High-Performance AI And Computing
The 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.
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