Data Center Virtualization Market to Reach $10.25 Billion by 2025

Written by Emily J. Thompson, Senior Investment Analyst

AVGO-3.21%

VMW%

Source: Globenewswire

Updated: 21h ago

0mins

Source: Globenewswire

Market Growth Potential: The data center virtualization market is projected to grow from $8.64 billion in 2024 to $10.25 billion in 2025, with a CAGR of 18.6%, indicating strong enterprise demand for virtual infrastructure upgrades.
Cloud Service Adoption: By December 2023, 45.2% of EU enterprises had adopted cloud services, which not only enhances the efficiency of data center virtualization but also drives demand for centralized IT control and remote accessibility.
Industry Consolidation Trend: Broadcom's acquisition of VMware in November 2023 strengthens its enterprise software portfolio, underscoring the market's shift towards comprehensive integration of virtualization and multi-cloud solutions, further propelling industry growth.
Regional Market Dynamics: North America remains the largest market, while the Asia-Pacific region is expected to be the fastest-growing area during the forecast period, reflecting a global emphasis on hybrid cloud and automation solutions.

AVGO

$332.48+Infinity%1D

Analyst Views on AVGO

Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

30 Analyst Rating

28 Buy

2 Hold

0 Sell

Strong Buy

Current: 343.500

Low

300.00

Averages

398.73

High

480.00

Current: 343.500

Low

300.00

Averages

398.73

High

480.00

Goldman Sachs

Buy

maintain

$450

2026-01-05

New

Reason

Goldman Sachs

Price Target

$450

2026-01-05

New

maintain

Buy

Reason

Goldman Sachs analysts added Broadcom to the firm's US Conviction List as part of its monthly update. The company's "dominant" position in enterprise networking silicon will drive market share gains in customer silicon processors for major U.S. hyperscalers, Goldman contends. It keeps a Buy rating on the shares with a $450 price target.

Truist

Buy

maintain

$500 -> $510

2025-12-19

Reason

Truist

Price Target

$500 -> $510

2025-12-19

maintain

Buy

Reason

Truist raised the firm's price target on Broadcom to $510 from $500 and keeps a Buy rating on the shares. The firm adjusted price targets in the semiconductor and artificial intelligence group after establishing 2027 estimates. Truist recognizes the challenges of finding the power to run AI infrastructure and getting the funding to pay for it. However, the firm believes AI infrastructure semiconductor stocks "remain cheap" relative to their growth. It sees "more upside pressure" to estimates for the group relative to the diversified analog semis heading into 2026. AI capital expenditure upside will continue in 2026, the analyst tells investors in a research note.

UBS

Timothy Arcuri

Buy

maintain

$472 -> $475

2025-12-15

Reason

UBS

Timothy Arcuri

Price Target

$472 -> $475

2025-12-15

maintain

Buy

Reason

UBS analyst Timothy Arcuri raised the firm's price target on Broadcom to $475 from $472 and keeps a Buy rating on the shares. Despite the sharp pullback on Friday highlighting how consensus-long the stock has become, recent management discussions suggest the market reaction was an overreaction, the analyst tells investors in a research note. Commentary on AI semiconductor revenue supports higher expectations for FY26, prompting upward estimate revisions, UBS says.

Piper Sandler

Harsh Kumar

Overweight

maintain

$375 -> $430

2025-12-12

Reason

Piper Sandler

Harsh Kumar

Price Target

$375 -> $430

2025-12-12

maintain

Overweight

Reason

Piper Sandler analyst Harsh Kumar raised the firm's price target on Broadcom to $430 from $375 and keeps an Overweight rating on the shares. The firm says the company continues to be "on a roll," delivering blockbuster results and guide. In addition to beating expectations, Broadcom is seeing sizable growth in its AI business, primarily driven by XPUs but also by networking. The company expects its AI business to deliver $8.2B in the January 2026 quarter, up roughly 100% year-over-year. Piper remains a buyer of Broadcom, especially on any weakness, and believes that gross margin dollars is the right approach for the XPU business.

About AVGO

Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.