Broadcom Inc. (NASDAQ: AVGO) announced significant advancements that strengthen its market position with an expanded portfolio of optical interconnect solutions suitable for artificial intelligence (AI) and machine learning (ML) applications.
These advancements in Broadcom’s cutting-edge optical technologies are designed to provide high-speed interconnections for the front-end and back-end networks of large generative AI computing clusters.
Highlights of the announcement include the production release of a 200 Gbps per lane (200 G/lane) electro-absorption modulated laser (EML) designed to complement next-generation GPUs and the unveiling of the first vertical cavity surface of 200 G/lane in the sector. -transmitter laser (VCSEL).
Additionally, Broadcom introduced a continuous wave (CW) laser featuring high efficiency and high linearity for silicon photonics (SiPh) modulation at 200G and announced the shipment of more than 20 million channels of optical components high speed 100G/lane for use in AI/ML Systems.
“We expect shipments of 8x100G optical transceivers to exceed 5 million units in 2024 and the first 8x200G modules to be delivered to customers by the end of the year,” commented Dr. Vladimir Kozlov, founder and CEO of LightCounting Market Research. “Google and Nvidia will be the first to adopt 200G optics per lane to interconnect GPUs and TPUs in AI clusters – the hottest area of the market today.”
Broadcom expects $10 billion in AI chip sales in 2024.
Citi analyst Christopher Danely reiterated a Buy rating on Broadcom with a price target of $1,560.
The analyst held an investor meeting with Broadcom CEO Hock Tan, who said AI spending doesn’t appear to be slowing with growth in demand for its AI accelerator and networking products.
The company sees the $400 billion AI TAM as achievable and believes custom ASIC growth is more sustainable than GPU growth, according to the analyst.
He noted that AVGO could gain an advantage from AI and the acquisition of VMware (23% of FY 2024 sales).
Investors can gain exposure to Broadcom through Pacer Funds ETF Pacer Data and the digital revolution (NYSE:TRFK) and Amplify ETF Trust Amplify Cybersecurity ETF (NYSE:HACK).
Price Actions: AVGO shares were down 2.39% at $1,260.49 at last check Wednesday.
Disclaimer: This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
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