Broadcom ( AVGO Quick Quote AVGO - Free Report) recently introduced Jericho3-AI, a fabric that enhances the performance of artificial intelligence (AI) networks. Jericho3-AI offers perfect load balancing, congestion-free operation, as well as ultra-high radix. It also provides zero-impact failover functionality to support large, long-lived flows in AI computations with up to 32,000 GPUs in a single cluster. Jericho3-AI-based fabrics helped network operators to effectively manage the increasingly large workloads demanded by AI while ensuring efficient performance. Jericho3-AI fabric boasts shorter job completion times by at least 10% for AI benchmarks like All-to-All, resulting in more efficient use of AI accelerators and a decrease in the cost of running AI workloads. It also offers almost four times the Ethernet bandwidth of the previous generation and 40% lower power per gigabit. Broadcom’s Strong Portfolio to Aid Prospects
Broadcom recently announced that it would start the production of the Tomahawk 5, a family of Ethernet switch/router chips, after seven months from initial sampling.
Tomahawk 5 is capable of delivering 51.2 Tbps of switching capacity, twice that of any other switch on the market and even the previous generation Tomahawk 4. Further, it also released the BCM85812, a 5nm 100G/lane optical PAM-4 DSP PHY with an integrated TIA and laser driver that offers superior performance and efficiency, resulting in reduced system power consumption for hyperscale data center and cloud providers. Broadcom’s expanding portfolio is expected to drive its top-line growth in 2023. Upgrades of edge and core routing networks with its next-generation Jericho portfolio at cloud and service providers also drives top-line growth. Broadcom raised its guidance for second-quarter fiscal 2023. It expects revenues of $8.7 billion, suggesting a year-over-year increase of 8%. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $8.71 billion, indicating 7.5% growth from the year-ago quarter’s reported figure. The consensus mark for earnings is projected at $10.13 per share, indicating growth of 11.7% from the year-ago quarter’s reported figure. Zacks Rank & Other Stocks to Consider
Currently, Broadcom carries a Zacks Rank #2 (Buy). It has gained 5.1% in a year compared with the Zacks
Electronics-Semiconductors industry’s gain of 3.3% and the Zacks Computer and Technology sector’s decline of 8.5%. Some other top-ranked stocks in the broader sector are Agilent Technologies ( A Quick Quote A - Free Report) , Adobe ( ADBE Quick Quote ADBE - Free Report) and Analog Devices ( ADI Quick Quote ADI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Agilent shares have gained 9.5% in the past year. The long-term earnings growth rate for A is currently projected at 12%. Adobe shares have lost 13.5% in the past year. ADBE’s long-term earnings growth rate is currently projected at 13.36%. Analog Devices shares have gained 16.8% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.