Broadcom (AVGO) and Canonical Announce An Expanded Collaboration

Broadcom Inc. (NASDAQ:AVGO) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 26, Broadcom Inc. (NASDAQ:AVGO) and Canonical announced an expanded collaboration to support customers in shipping modern container-based and AI applications faster and more securely. By bringing Canonical’s trusted open-source software with VMware Cloud Foundation (VCF), the alliance aims to help customers ramp up innovation, with lower costs and less risk. Overall, the partnership tends to combine the leading cloud OS with the industry’s first unified private cloud platform to ramp up the cloud native innovation.

Also, Broadcom Inc. (NASDAQ:AVGO) and Walmart announced a strategic collaboration to deliver a modern private cloud and edge environment. Broadcom Inc. (NASDAQ:AVGO) has been named as the strategic vendor for virtualization software solutions, leveraging VCF to unify Walmart’s globally distributed operations. This relationship is expected to improve the shopping experience, enhance operational efficiency, and ramp up the development and delivery of innovative services.

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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Disclosure: None. This article is originally published at Insider Monkey.