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Broadcom (AVGO) Expands Portfolio With New AI Optical Solutions
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Broadcom (AVGO - Free Report) recently announced significant advancements in its optical interconnect solutions tailored for AI and machine learning (ML) applications. This development marks a crucial stride forward in the integration of cutting-edge optics technologies into the rapidly evolving landscape of AI infrastructure.
The latest achievements unveiled by Broadcom include the production release of the 200-Gbps per lane (200G/lane) electro-absorption modulated laser (EML) designed to complement next-generation GPUs.
Moreover, Broadcom has showcased the industry's first 200G/lane vertical-cavity surface-emitting laser (VCSEL) and a continuous wave (CW) laser optimized for silicon photonics (SiPh) modulation at 200G. These breakthroughs are set to revolutionize high-speed interconnects within AI compute clusters, facilitating both front-end and back-end networks.
Broadcom's relentless pursuit of innovation is further exemplified by the shipment of more than 20 million channels of 100G/lane high-speed optical components, which have been instrumental in powering AI/ML systems worldwide. The introduction of 200G VCSEL and EML products builds upon this success, promising unparalleled bandwidth and interconnect density essential for next-generation AI infrastructure.
Broadcom's continued investment in VCSEL, EML and CW laser technologies underscores its commitment to delivering disruptive innovations in bandwidth, power efficiency and latency optimization for optical interconnects.
Industry experts, including Dr. Vladimir Kozlov, founder and CEO of LightCounting Market Research, anticipate a substantial uptake of 200G per lane optics in AI clusters, with Google and NVIDIA (NVDA - Free Report) leading the adoption curve.
Broadcom's pioneering efforts position it as a key enabler in this paradigm shift toward terabit connectivity, providing critical components for the next generation of optical transceivers.
The strategic partnership between Broadcom and leading industry players, such as NVIDIA, Innolight Technology and Eoptolink Technology, underscores the collaborative approach toward advancing AI/ML optical transceiver technologies. This collective effort aims to address the escalating demand for larger AI clusters while driving innovation in generative AI architectures.
To showcase its latest advancements, Broadcom will present a series of product demonstrations at the Optical Fiber Communication (OFC) 2024 exhibition in San Diego, CA. Attendees can witness firsthand the breakthroughs in 200G VCSEL technology, EML products, SiPh modulation with CW lasers and emerging applications of 100G VCSELs.
Broadcom Rides on Strong AI Demand
Broadcom shares have gained 12.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 10.8%. It has been benefiting from an extensive range of semiconductor offerings and a diverse portfolio.
AVGO is benefiting from the robust adoption of AI and the strong deployment of generative AI. In the first quarter of 2024, under its semiconductor segment, AI revenues quadrupled year on year to $2.3 billion despite sluggish enterprise and telcos end markets.
Broadcom now expects fiscal 2024 AI revenues of roughly $10 billion (higher than previous guidance of $7.5 billion) and to account for 35% of semiconductor revenues (higher than previous guidance of 25%).
Networking revenues are expected to rally 35% year over year, driven by the accelerating deployment of networking connectivity and the expansion of AI accelerators within hyperscalers.
For fiscal 2024, AVGO still expects revenues of $50 billion and adjusted EBITDA margin of 60%.
The Zacks Consensus Estimate for fiscal 2024 is pegged at $50.24 billion, suggesting growth of 40.26% year over year. The consensus estimate for earnings is pegged at $46.94 per share, up 0.4% over the past 30 days, indicating 11.1% year-over-year growth.
Image: Bigstock
Broadcom (AVGO) Expands Portfolio With New AI Optical Solutions
Broadcom (AVGO - Free Report) recently announced significant advancements in its optical interconnect solutions tailored for AI and machine learning (ML) applications. This development marks a crucial stride forward in the integration of cutting-edge optics technologies into the rapidly evolving landscape of AI infrastructure.
The latest achievements unveiled by Broadcom include the production release of the 200-Gbps per lane (200G/lane) electro-absorption modulated laser (EML) designed to complement next-generation GPUs.
Moreover, Broadcom has showcased the industry's first 200G/lane vertical-cavity surface-emitting laser (VCSEL) and a continuous wave (CW) laser optimized for silicon photonics (SiPh) modulation at 200G. These breakthroughs are set to revolutionize high-speed interconnects within AI compute clusters, facilitating both front-end and back-end networks.
Broadcom's relentless pursuit of innovation is further exemplified by the shipment of more than 20 million channels of 100G/lane high-speed optical components, which have been instrumental in powering AI/ML systems worldwide. The introduction of 200G VCSEL and EML products builds upon this success, promising unparalleled bandwidth and interconnect density essential for next-generation AI infrastructure.
Broadcom's continued investment in VCSEL, EML and CW laser technologies underscores its commitment to delivering disruptive innovations in bandwidth, power efficiency and latency optimization for optical interconnects.
Industry experts, including Dr. Vladimir Kozlov, founder and CEO of LightCounting Market Research, anticipate a substantial uptake of 200G per lane optics in AI clusters, with Google and NVIDIA (NVDA - Free Report) leading the adoption curve.
Broadcom's pioneering efforts position it as a key enabler in this paradigm shift toward terabit connectivity, providing critical components for the next generation of optical transceivers.
The strategic partnership between Broadcom and leading industry players, such as NVIDIA, Innolight Technology and Eoptolink Technology, underscores the collaborative approach toward advancing AI/ML optical transceiver technologies. This collective effort aims to address the escalating demand for larger AI clusters while driving innovation in generative AI architectures.
Broadcom Inc. Price and Consensus
Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote
To showcase its latest advancements, Broadcom will present a series of product demonstrations at the Optical Fiber Communication (OFC) 2024 exhibition in San Diego, CA. Attendees can witness firsthand the breakthroughs in 200G VCSEL technology, EML products, SiPh modulation with CW lasers and emerging applications of 100G VCSELs.
Broadcom Rides on Strong AI Demand
Broadcom shares have gained 12.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 10.8%. It has been benefiting from an extensive range of semiconductor offerings and a diverse portfolio.
AVGO is benefiting from the robust adoption of AI and the strong deployment of generative AI. In the first quarter of 2024, under its semiconductor segment, AI revenues quadrupled year on year to $2.3 billion despite sluggish enterprise and telcos end markets.
Broadcom now expects fiscal 2024 AI revenues of roughly $10 billion (higher than previous guidance of $7.5 billion) and to account for 35% of semiconductor revenues (higher than previous guidance of 25%).
Networking revenues are expected to rally 35% year over year, driven by the accelerating deployment of networking connectivity and the expansion of AI accelerators within hyperscalers.
For fiscal 2024, AVGO still expects revenues of $50 billion and adjusted EBITDA margin of 60%.
The Zacks Consensus Estimate for fiscal 2024 is pegged at $50.24 billion, suggesting growth of 40.26% year over year. The consensus estimate for earnings is pegged at $46.94 per share, up 0.4% over the past 30 days, indicating 11.1% year-over-year growth.
Zacks Rank & Stocks to Consider
Broadcom currently has a Zacks Rank #4 (Sell).
Meta Platforms (META - Free Report) and Synopsys (SNPS - Free Report) are a couple of better-ranked stocks in the broader sector that investors can consider, each sporting a Zacks Rank #1 (Strong Buy) at present. You can find the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Meta Platforms and Synopsys is currently pegged at 19.5% and 17.51%, respectively.
Shares of Meta Platforms and Synopsys have surged 40% and 9%, respectively.