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PALO ALTO - Broadcom Inc. (NASDAQ:AVGO), a prominent player in the Semiconductors industry with revenue of $57.05 billion in the last twelve months, announced Tuesday the general availability of VMware Cloud Foundation (VCF) 9.0, a platform designed for modern private cloud environments. According to InvestingPro data, the company maintains impressive gross profit margins of 77%, demonstrating strong operational efficiency.
The new platform provides a consistent operating model for private cloud across data centers, edge computing, and managed cloud infrastructure from service providers and hyperscalers, according to the company.
VCF 9.0 introduces a unified interface for cloud administrators and a streamlined experience for platform and development teams. The platform supports traditional, cloud-native, and AI applications through the embedded vSphere Kubernetes Service, which enables both virtual machines and containers to be managed together.
Key features include a new SecOps dashboard for platform security and data controls, advanced memory tiering for NVMe that can deliver 38% lower memory and server TCO, and VMware vSAN ESA with Global Dedupe that can reduce storage TCO by 34%, based on Broadcom’s internal engineering estimates.
"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 of the VCF Division at Broadcom.
The platform also includes enhancements to Broadcom’s advanced services portfolio, including VMware Private AI Foundation with NVIDIA, VMware Live Recovery, VMware vDefend, VMware Data Services Manager, and Avi Load Balancer.
Several customers, including GCI Communications, IPZS, Ratiodata, and University of Bristol, reported benefits from implementing VCF, such as reduced manual tasks, improved operational efficiency, and enhanced security.
The announcement, based on a press release statement, comes as Broadcom continues to integrate VMware’s products following its acquisition of the virtualization company. Based on current market analysis from InvestingPro, Broadcom appears to be trading above its Fair Value, with 18 additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report, offering deeper insights into the company’s post-acquisition performance and growth potential.
In other recent news, Broadcom Limited reported its fiscal second-quarter 2025 earnings, meeting analysts’ expectations with $15.0 billion in revenue. The semiconductor division contributed $8.4 billion, while the software segment added $6.6 billion. Analysts from Bernstein SocGen Group, TD Cowen, Rosenblatt, Citi, and BofA Securities have raised their price targets for Broadcom, citing strong growth in the company’s artificial intelligence (AI) segment. Bernstein SocGen set a new target of $295, while TD Cowen and Citi adjusted theirs to $290 and $285, respectively. Rosenblatt and BofA Securities set higher targets of $340 and $300, reflecting confidence in Broadcom’s AI growth prospects. Broadcom’s AI segment is projected to grow 60% year-over-year, with anticipated AI sales for next year around $30 billion, which exceeds current consensus estimates. The company also highlighted its robust pipeline in AI networking and custom ASIC capabilities, which are crucial for large language model applications. Despite challenges with lower margins due to a higher semiconductor mix, analysts remain optimistic about Broadcom’s future, maintaining their Buy ratings.
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