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LAS VEGAS - Broadcom Inc. (NASDAQ:AVGO), a prominent player in the Semiconductors industry with annual revenue of $57.05 billion, announced plans to integrate NVIDIA’s latest AI technology into VMware Cloud Foundation (VCF), according to a press release issued Tuesday at VMware Explore 2025. According to InvestingPro data, the company maintains impressive gross profit margins of 77%.
The collaboration aims to enable enterprises and cloud service providers to build and deploy advanced AI models on AI servers within their private cloud environments while maintaining VCF’s operational framework. This strategic move aligns with Broadcom’s strong market position, as InvestingPro analysis indicates robust revenue growth of 34% over the last twelve months.
The expanded integration will add support for NVIDIA Blackwell GPUs, including NVIDIA RTX PRO 6000 Server Edition GPUs, and NVIDIA networking components. These additions will enhance the jointly developed VMware Private AI Foundation with NVIDIA.
"Our customers want the freedom to innovate with AI while continuing to rely on the enterprise platforms they trust," said Paul Turner, vice president of products, VMware Cloud Foundation Division at Broadcom.
Justin Boitano, vice president of Enterprise AI at NVIDIA, noted that "the emergence of generative AI is driving the need for a new level of accelerated computing infrastructure."
Key elements of the integration include support for NVIDIA Blackwell Architecture GPUs, with specific compatibility for NVIDIA RTX PRO 6000 Server Edition GPUs. Future VCF releases are expected to support NVIDIA Blackwell B200 GPUs.
The integration will also incorporate high-speed networking capabilities with NVIDIA ConnectX-7 NICs and NVIDIA BlueField-3 400G DPUs with DirectPath I/O, enabling features like NVIDIA GPUDirect RDMA and GPUDirect Storage for multi-node AI model training.
Broadcom emphasized that customers will retain familiar VCF operational workflows and enterprise virtualization features such as vMotion, High Availability, Distributed Resource Scheduler, and Live Patching when deploying NVIDIA innovations.
The announcement was made during VMware Explore 2025, the company’s annual cloud technology event for IT practitioners. While Broadcom’s stock currently trades above its Fair Value according to InvestingPro analysis, investors can access over 15 additional ProTips and comprehensive financial metrics through the platform’s detailed research reports, available for more than 1,400 US stocks.
In other recent news, Broadcom has unveiled new cybersecurity and compliance tools for VMware Cloud Foundation, aimed at enhancing security for organizations in regulated industries. This new service, VCF Advanced Cyber Compliance, offers automated compliance management and cyber recovery capabilities. Meanwhile, several investment firms have made adjustments to their outlook on Broadcom. Piper Sandler raised its price target to $315, maintaining an Overweight rating, citing growth in the semiconductor and infrastructure software sectors. Goldman Sachs reiterated its Buy rating with a $340 price target, focusing on upcoming XPU revenue contributions and AI guidance. Morgan Stanley also increased its price target to $338, reflecting a positive AI outlook and adjusting its 2026 EPS multiple. Broadcom has seen a 64.91% increase over the past year, driven by demand for AI and networking chips, alongside revenue from software acquisitions.
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