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.
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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 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.
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