How Broadcom (AVGO) Is Bringing VMware Into Production AI Infrastructure

Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks to buy for next-gen data centers. On May 5, the company announced VMware Cloud Foundation 9.1, describing it as a secure and cost-effective infrastructure platform for production AI workloads. Broadcom said the platform supports inference and agentic AI applications through an AI- and Kubernetes-native private cloud architecture, with integrated security and mixed compute support across AMD, Intel, and NVIDIA hardware.

The update fits the next-generation data center theme because AI infrastructure is moving beyond raw accelerator purchases into operational platforms that can manage cost, security, utilization, and scale. Broadcom said VCF 9.1 can reduce server costs by up to 40% through intelligent memory tiering, lower storage TCO by up to 39%, cut Kubernetes operational costs by up to 46%, and support 4x faster cluster upgrades with 2x higher fleet capacity. The platform also includes support for multi-tenant AI isolation, Arista Universal Cloud Network interoperability, and NVIDIA ConnectX-7 and BlueField-3 networking for high-speed AI workloads.

How Broadcom (AVGO) Is Bringing VMware Into Production AI Infrastructure

Posonskyi Andrey/Shutterstock.com

Broadcom Inc. (NASDAQ:AVGO) provides semiconductor and infrastructure software solutions, including custom AI accelerators, Ethernet switching, optical connectivity, storage, broadband, wireless, security, and enterprise infrastructure software products.

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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