Overview
- VMware Cloud Foundation 9.1 targets production AI in private clouds with mixed CPU and accelerator support and fleet automation for large clusters.
- Broadcom said it extended its Google Cloud software partnership, expanding reach for VMware-based AI workloads.
- Infrastructure Software delivered 26% revenue growth last fiscal year with a 78% operating margin, and the company guides to 19% ARR growth in Q2.
- Management points to major custom XPU ramps in the second half of fiscal 2026 and expects full AI rack sales to support about 77% semiconductor gross margins.
- Analysts warn that tight TSMC capacity and shortages of parts such as lasers and PCBs could slow the revenue timeline, with some FY26 estimates already trimmed.