We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
New Wi-Fi 8 Expands AVGO's Connectivity Portfolio: What's Ahead?
Read MoreHide Full Article
Key Takeaways
AVGO unveiled a unified Wi-Fi 8 platform with the BCM4918 APU and new dual-band Wi-Fi 8 chipsets.
The platform supports AI/ML inference, networking offload, and cryptographic acceleration.
AVGO expects Q1 fiscal 2026 AI revenues to double year over year to $8.2 billion.
Broadcom (AVGO - Free Report) is expanding its Wireless Device Connectivity solutions portfolio with the launch of its next-generation BCM4918 accelerated processing unit (APU) alongside two new dual-band Wi-Fi 8 devices, the BCM6714 and BCM6719. Broadcom’s unified Wi-Fi 8 platform combines higher throughput with built-in intelligence, which will enable operators to deliver secure, power-efficient, real-time agentic applications for residential users.
Building on its first-to-market BCM6718 Wi-Fi 8 chipset, AVGO’s new platform integrates compute acceleration, advanced networking and robust security to meet the demands of an increasingly AI-driven connected ecosystem. At the core of the platform is the BCM4918 Wi-Fi 8 APU, a highly integrated system-on-chip that unifies high-performance CPU computing, on-device AI/ML inference through the Broadcom Neural Engine, advanced wired and wireless networking offload, and end-to-end cryptographic acceleration. Complementing the APU are the BCM6714 and BCM6719 dual-band Wi-Fi 8 radios, which integrate 2.4 GHz and 5 GHz operation on a single chip.
AVGO’s Wireless Device Connectivity business falls under the Semiconductor Solutions segment that accounted for 58% of fiscal 2025. The company’s semiconductor revenues are benefiting from strong demand for XPUs, which are a type of application-specific integrated circuit (ASIC) necessary to train Generative AI (Gen AI) models. XPU adoption accelerated in the reported quarter as enterprises continue to use these to train their large language models and monetize their platforms through inference APIs and applications. Alphabet and Meta Platforms are major users of these XPUs.
AVGO’s expanding clientele, which now includes Anthropic, is driving growth. The company’s current order backlog for AI switches exceeds $10 billion as AVGO’s latest 102-terabit per second Tomahawk 6 switch continues to gain traction. AVGO now expects first-quarter fiscal 2026 AI revenues to double year over year to $8.2 billion. Broadcom expects first-quarter fiscal 2026 Semiconductor revenues of $12.3 billion, suggesting 50% year-over-year growth. The Zacks Consensus Estimate for Semiconductor revenues is currently pegged at $12.1 billion, indicating 47.3% year-over-year growth.
AVGO Faces Tough Competition in the Semiconductor Market
Broadcom is a major player in the semiconductor market, but is facing stiff competition from NVIDIA (NVDA - Free Report) and Marvell Technology (MRVL - Free Report) .
NVIDIA is benefiting from the strong growth of AI and high-performance accelerated computing. The growing demand for Gen AI and large language models using GPUs based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. In the third quarter of fiscal 2026, revenues from Data Center (accounted for 89.8% of NVDA revenues) jumped 66% year over year and 25% sequentially to $51.22 billion.
Marvell Technology’s data center end-market revenues jumped 39% year over year in the third quarter of fiscal 2026, propelled by strong growth across AI-driven demand for custom XPU silicon and electro-optics interconnect products. The company’s AI-driven custom silicon business has secured more than 20 multi-generational XPU and XPU-attach socket wins. MRVL’s design pipeline has expanded to more than 50 opportunities worth $75 billion, underscoring hyperscalers’ growing reliance on Marvell’s differentiated capabilities.
Broadcom shares have appreciated 50.7% in a year, outperforming the broader Zacks Computer and Technology sector’s return of 25.7%.
AVGO Stock Outperforms Sector
Image Source: Zacks Investment Research
The AVGO stock is trading at a premium, with a forward 12-month price/earnings of 32.33X compared with the broader sector’s 27.84X. Broadcom has a Value Score of D.
AVGO Stock has a Stretched Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.86 per share, up 7.2% over the past 30 days, suggesting 44.6% growth from fiscal 2025’s reported figure.
Image: Bigstock
New Wi-Fi 8 Expands AVGO's Connectivity Portfolio: What's Ahead?
Key Takeaways
Broadcom (AVGO - Free Report) is expanding its Wireless Device Connectivity solutions portfolio with the launch of its next-generation BCM4918 accelerated processing unit (APU) alongside two new dual-band Wi-Fi 8 devices, the BCM6714 and BCM6719. Broadcom’s unified Wi-Fi 8 platform combines higher throughput with built-in intelligence, which will enable operators to deliver secure, power-efficient, real-time agentic applications for residential users.
Building on its first-to-market BCM6718 Wi-Fi 8 chipset, AVGO’s new platform integrates compute acceleration, advanced networking and robust security to meet the demands of an increasingly AI-driven connected ecosystem. At the core of the platform is the BCM4918 Wi-Fi 8 APU, a highly integrated system-on-chip that unifies high-performance CPU computing, on-device AI/ML inference through the Broadcom Neural Engine, advanced wired and wireless networking offload, and end-to-end cryptographic acceleration. Complementing the APU are the BCM6714 and BCM6719 dual-band Wi-Fi 8 radios, which integrate 2.4 GHz and 5 GHz operation on a single chip.
AVGO’s Wireless Device Connectivity business falls under the Semiconductor Solutions segment that accounted for 58% of fiscal 2025. The company’s semiconductor revenues are benefiting from strong demand for XPUs, which are a type of application-specific integrated circuit (ASIC) necessary to train Generative AI (Gen AI) models. XPU adoption accelerated in the reported quarter as enterprises continue to use these to train their large language models and monetize their platforms through inference APIs and applications. Alphabet and Meta Platforms are major users of these XPUs.
AVGO’s expanding clientele, which now includes Anthropic, is driving growth. The company’s current order backlog for AI switches exceeds $10 billion as AVGO’s latest 102-terabit per second Tomahawk 6 switch continues to gain traction. AVGO now expects first-quarter fiscal 2026 AI revenues to double year over year to $8.2 billion. Broadcom expects first-quarter fiscal 2026 Semiconductor revenues of $12.3 billion, suggesting 50% year-over-year growth. The Zacks Consensus Estimate for Semiconductor revenues is currently pegged at $12.1 billion, indicating 47.3% year-over-year growth.
AVGO Faces Tough Competition in the Semiconductor Market
Broadcom is a major player in the semiconductor market, but is facing stiff competition from NVIDIA (NVDA - Free Report) and Marvell Technology (MRVL - Free Report) .
NVIDIA is benefiting from the strong growth of AI and high-performance accelerated computing. The growing demand for Gen AI and large language models using GPUs based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. In the third quarter of fiscal 2026, revenues from Data Center (accounted for 89.8% of NVDA revenues) jumped 66% year over year and 25% sequentially to $51.22 billion.
Marvell Technology’s data center end-market revenues jumped 39% year over year in the third quarter of fiscal 2026, propelled by strong growth across AI-driven demand for custom XPU silicon and electro-optics interconnect products. The company’s AI-driven custom silicon business has secured more than 20 multi-generational XPU and XPU-attach socket wins. MRVL’s design pipeline has expanded to more than 50 opportunities worth $75 billion, underscoring hyperscalers’ growing reliance on Marvell’s differentiated capabilities.
AVGO’s Share Price Performance, Valuation & Estimates
Broadcom shares have appreciated 50.7% in a year, outperforming the broader Zacks Computer and Technology sector’s return of 25.7%.
AVGO Stock Outperforms Sector
Image Source: Zacks Investment Research
The AVGO stock is trading at a premium, with a forward 12-month price/earnings of 32.33X compared with the broader sector’s 27.84X. Broadcom has a Value Score of D.
AVGO Stock has a Stretched Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.86 per share, up 7.2% over the past 30 days, suggesting 44.6% growth from fiscal 2025’s reported figure.
Broadcom Inc. Price and Consensus
Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote
Broadcom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.