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Broadcom adds VMware security features as its AI chip revenue ramps
Yahoo Finance reports Broadcom expects its AI semiconductor business to top $100 billion in revenue in 2027, even as it rolls out new vDefend and Avi Load Balancer capabilities.
Broadcom (AVGO) is pairing momentum in its custom AI chips with continued investment in its VMware infrastructure software, according to Yahoo Finance. On August 6, the company announced updates to VMware vDefend and the Avi Load Balancer, positioning the software upgrades as part of an effort to address AI-fueled cyberattacks while enterprises expand their VMware footprint.
Broadcom’s AI chip push remains the central growth driver. Yahoo Finance cites Chief Executive Hock Tan telling investors the AI semiconductor business is set to top $100 billion in revenue in 2027, up sharply from $10.8 billion in revenue generated in the second quarter, which was 143% higher year over year. Alphabet is the primary buyer of the chips today, and Broadcom guided for the AI chip business to grow more than 200% in the current quarter, the outlet added.
The software announcement includes vDefend SSP 5.2, vDefend 9.1.1, Avi Load Balancer 32.1.4, and a vACT 3.0 migration tool. Yahoo Finance said the updates add native API protection, on-premises malware sandboxing, and full air-gapped support, along with performance improvements such as distributed firewall throughput up to 75Gbps per 100G NIC server, a 241% increase, and up to 33% less hardware needed for a two-node vDefend deployment model.
In its broader results context, Yahoo Finance reported second-quarter total revenue rose 48% year over year to $22.2 billion, adjusted earnings per share increased 54% to $2.44, and free cash flow reached $10.3 billion, up 60%. The outlet said the mix of fast-growing chips and ongoing VMware evolution is shaping how investors weigh Broadcom’s growth story after a roughly 20% pullback from its end-of-May all-time high.