Broadcom Inc. (NASDAQ: AVGO) and ING on Monday announced an expanded strategic collaboration aimed at modernizing the bank’s private cloud infrastructure.
Under the agreement, ING will adopt VMware Cloud Foundation 9.0 (VCF 9) as a core component of its multi-region private cloud strategy, supporting its long-term goal of delivering resilient, secure, and scalable digital banking services globally.
As a multinational financial institution operating under stringent regulatory requirements, ING depends on a cloud-native environment that ensures security, compliance, and workload mobility across regions.
Executive Commentary
Broadcom emphasized the relevance of VCF 9 for financial institutions navigating the complexities of modernization and regulation. “Our expanded partnership with ING underscores VCF 9’s transformative power for financial institutions,” said Hock Tan, president and CEO of Broadcom.
Stock Performance and Analyst Insights
Broadcom stock has gained 67% year-to-date, driven by demand for AI-focused semiconductors and continued expansion from VMware.
Bank of America Securities analyst Vivek Arya argued that Google’s increasing dependence on its in-house Tensor Processing Units is a significant catalyst for Broadcom’s custom silicon business.
He expects Broadcom’s TPU revenue to accelerate as Google trains more models, such as Gemini, on TPUs and expands access to external customers, with unit prices and shipments potentially increasing sharply through 2026.
Arya acknowledged competitive risks from Nvidia Corp.’s (NASDAQ: NVDA) upcoming architectures and possible changes in Google’s go-to-market strategy.
However, he still sees Broadcom gaining market share in the AI accelerator market and driving stronger earnings as AI compute demand scales.
AVGO Price Action: Broadcom shares were up 0.79% at $389.12 during premarket trading on Tuesday. The stock is approaching its 52-week high of $403.00, according to Benzinga Pro data.