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Fortune 500 Giants Turn to Broadcom's (AVGO) VMware Cloud Foundation for AI Workloads

By Ghazal Ahmed | September 01, 2025, 1:00 AM

Broadcom Inc. (NASDAQ:AVGO) is one of the  AI Stocks Investors Should Keep on Their Radar. On August 26, the company announced that VMware Private AI Services will become a standard component of VMware Cloud Foundation 9.0, making the VMware Cloud Foundation an AI native platform. The general availability of the VCF 9.0 will allow customers to leverage a unified, AI native platform for secure, modern private cloud infrastructure at scale.

According to the company, nine out of top 10 Fortune 500 companies have committed to VCF, with worldwide customers licensing more than 100 million cores. The VCF is a secure, scalable private cloud platform that allows organizations to run, move, and govern AI models with GPU precision.

VMware Private AI Services entitlement is also anticipated to be available in Broadcom’s Q1 FY26. The native AI services include GPU Monitoring, Model Store, Model Runtime, Agent Builder, Vector Database, and Data Indexing/Retrieval. The advantages of these services are enhanced privacy and security, simplified infrastructure, and streamlined model deployment, all without an additional purchase now that private AI is core to the VCF.

VCF customers will also get access to upcoming AI innovations such as Intelligent Assist for VCF, Model Context Protocol (MCP) Support, Multi-accelerator Model Runtime, and Multi-tenant Models-as-a-Service.

“It’s undeniable that customers are resetting their cloud strategies and building out their private clouds to support better developer velocity with IT control, and more cost-efficient AI deployments. To support the next wave of AI innovation, Broadcom is making Private AI a standard part of the modern private cloud. With VMware Cloud Foundation, infrastructure and cloud operators get the cost and operational benefits of virtualization for AI workloads without sacrificing performance. Developers get access to native AI services delivered directly from the private cloud platform for a frictionless experience.” -Krish Prasad, senior vice president and general manager, VMware Cloud Foundation Division, Broadcom.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Hit with New Analyst Ratings and 10 Trending AI Stocks on Wall Street

Disclosure: None.

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