Broadcom Expands VMware AI Push to Challenge Nutanix and Microsoft

Product / TechEarnings
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Broadcom is expanding VMware's role in enterprise private AI infrastructure with the release of VMware Cloud Foundation 9.1, aiming to capture a larger share of enterprise AI and hybrid-cloud spending against rivals Nutanix and Microsoft. The platform supports heterogeneous computing across AMD, Intel, and NVIDIA architectures, allowing customers to run AI, Kubernetes, and traditional virtualized workloads in a common private-cloud environment. Broadcom reported that software revenues rose 9% year over year to $7.2 billion in the second quarter of fiscal 2026, with annualized recurring revenues up 17%, and expects infrastructure software revenues to reach approximately $8.9 billion in the third quarter, representing 31% growth. The infrastructure software business generated a 93% gross margin and an operating margin of roughly 79% in the quarter. Nutanix is countering with its Nutanix Cloud Platform and Agentic AI, while Microsoft's Azure surpassed $100 billion in annual revenues, growing 41%, and its Sovereign Cloud and Foundry offerings expand its enterprise AI ecosystem. Broadcom shares have gained 6.3% year to date, underperforming the sector's 16.8% growth, and trade at a forward P/E of 20.70X, slightly above the sector's 20.65X.

Impact on stocks 5

Artificial Intelligence± Mixed · 3 stocks
Broadcom Inc
AVGO
▲ PositiveTechnologyrelevance

Broadcom releases VMware Cloud Foundation 9.1 to expand AI push, with strong software revenue growth.

Microsoft Corporation
MSFT
▼ NegativeCompetitionrelevance

Broadcom's VMware expansion challenges Microsoft's Azure in enterprise AI and hybrid-cloud.

Advanced Micro Devices Inc
AMD
▲ PositiveDemandrelevance

VMware Cloud Foundation 9.1 supports AMD architectures, potentially increasing demand for AMD chips in enterprise AI.

Cloud & Digital Infrastructure▼ · 1 stocks
Nutanix Inc
NTNX
▼ NegativeCompetitionrelevance

Broadcom's VMware Cloud Foundation 9.1 directly competes with Nutanix Cloud Platform and Agentic AI.

Semiconductors▲ · 1 stocks
Intel Corporation
INTC
▲ PositiveDemandrelevance

VMware Cloud Foundation 9.1 supports Intel architectures, potentially increasing demand for Intel chips.

Theme Impact 7

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