Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best Semiconductor Stocks to Buy Right Now. On August 26, Broadcom Inc. announced that it is working to bring the latest NVIDIA AI technology to VMware Cloud Foundation (VCF). As a result of this collaboration with NVIDIA, enterprises and cloud service providers would be empowered to build, deploy, and scale next-generation AI models on cutting-edge AI servers within their modern private cloud environments, while, at the same time, leveraging the trusted operational experience of VCF.
The generative, agentic, and physical AI applications continue to fundamentally transform the data center architectures, demanding unprecedented infrastructure capabilities. The expanded integration further builds on Broadcom Inc. (NASDAQ:AVGO) and NVIDIA collaboration, adding support for NVIDIA Blackwell GPUs and NVIDIA networking. VCF will support NVIDIA’s latest GPU architecture, which has been engineered for massive AI training, inference, and HPC at unprecedented scale.
Baron Funds, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Broadcom Inc. (NASDAQ:AVGO) is a leading semiconductor and enterprise software company, generating approximately 60% of revenue from semiconductors and 40% from software. The company is strategically positioned at the intersection of high-performance AI compute and networking infrastructure, while also demonstrating disciplined execution in software. Broadcom has continued its leadership in networking silicon from the cloud era to the AI era and emerged as the most reliable silicon partner for AI foundational model builders to design custom chips to train and inference their frontier models. Shares rose during the quarter on continued momentum in Broadcom’s AI product lines. In its April quarter, Broadcom reported over $15 billion in total revenue, up 20%; over $4.4 billion in AI revenue, up 40%; and over $6.6 billion in software revenue, up 25%. Broadcom continued to demonstrate excellent profitability, with operating margins over 65% and free cash flow margins at 43%. On the company’s earnings call and during other public appearances, Broadcom CEO Hock Tan confirmed that all programs supporting the company’s projected $60 billion to $90 billion serviceable addressable AI market by 2027 were “on track,” inference demand had emerged as an important AI revenue opportunity, and that the company’s AI revenue growth should accelerate to the 50% to 60% level for fiscal years 2025 and 2026.”
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