Data Center Virtualization Market to Reach $10.25 Billion by 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Should l Buy AVGO?
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.
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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 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 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.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 310.510
Low
390.00
Averages
462.58
High
525.00
Current: 310.510
Low
390.00
Averages
462.58
High
525.00
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.
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- Revenue Doubling Forecast: Broadcom anticipates its AI semiconductor revenue will double year-over-year in the first quarter, making it the fastest-growing company in the AI computing space, showcasing its strong competitive capabilities.
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- Client Base Expansion: By partnering directly with AI hyperscalers to design custom AI chips, Broadcom has attracted large clients, including Google, and expects more clients to finalize designs and purchase chips by 2026 and 2027, driving revenue growth.
- Optimistic Financial Outlook: Despite AI semiconductor revenue comprising less than half of its total, Wall Street analysts project a 52% revenue growth for FY 2026 and 39% for FY 2027, positioning Broadcom to potentially reach a $3 trillion market cap by the end of 2027.
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See More
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