Broadcom shares gained 9.5% to $321 in Monday's trade after the company announced a series of developments around its VMware business and Kubernetes ecosystem, including the acceptance of its Virtual Machine (VM) API project into the Cloud Native Computing Foundation (CNCF) Sandbox.
The rally marked a sharp reversal from the recent sell-off and put the stock on track for its biggest single-day gain in a year.
The announcement, made at KubeCon North America, is aimed at strengthening enterprise virtualisation and cloud-native infrastructure capabilities as businesses increasingly adopt artificial intelligence (AI) and agentic AI workloads.
The company in its press release said that VM API project allows virtual machines to be provisioned and managed through Kubernetes APIs across different infrastructure providers.
Broadcom also announced that it would co-chair the newly formed Workload Conformance Working Group within the Kubernetes community to establish common standards for running workloads on Kubernetes.