Broadcom Launches New Tech To Help Small Businesses Build Private Clouds
Broadcom Inc. (NASDAQ:AVGO) is expanding its push to simplify private cloud adoption for smaller businesses while riding strong artificial intelligence-driven growth across its chip and infrastructure businesses.
- Broadcom stock is showing positive momentum. Where is AVGO stock headed?
On Tuesday, Broadcom announced it is making it easier for small and mid-sized companies to build their own private clouds.
Following a successful trial in the United States, the tech giant is expanding its support program to Europe, the Middle East, and Africa, with TD Synnex Corp (NYSE:SNX) leading the rollout.
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Many smaller businesses want the security and predictable costs of a private cloud but lack the specialized staff to set one up, the company said.
Broadcom solves this by allowing its partners to bundle professional technical support directly with the software.
This means a business can now buy the software and the necessary expert help in a single transaction, removing the technical barrier to entry.
The program guides customers through the entire lifecycle of the transition.
Broadcom plans to expand this service model to Asia and other regions soon, recruiting local partners to offer similar hands-on help.
Broadcom stock gained 74% year-to-date, driven by the AI frenzy.
Analyst Take On Broadcom
JP Morgan's Harlan Sur said Broadcom is likely to beat quarterly expectations as strong demand for AI chips and data-center networking drives growth across its chip and infrastructure businesses.
He expects October-quarter revenue of more than $17.5 billion, including $6.5–$6.7 billion from AI, supported by Alphabet Inc. (NASDAQ:GOOGL) Google's Tensor Processing Unit (TPU) v6 ramp and strong sales of Tomahawk 5 switches.
Sur said management should guide the January quarter above Street estimates, with revenue topping $19 billion and AI revenue near $8 billion, driven by continued momentum in AI networking and new chip programs.
He projects $20–21 billion in AI revenue for fiscal 2025 and sees a path to more than $50 billion in fiscal 2026 as new products ramp.
Sur also expects non-AI chip markets to recover, VMware to deliver strong renewals and upsell, and free cash flow to grow at a double-digit pace, supporting dividends and balance-sheet improvement.
AVGO Price Action: Broadcom shares were down 0.63% at $403.74 at the time of publication on Wednesday. The stock is trading near its 52-week high of $407.28, according to Benzinga Pro data.
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