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Broadcom Boosts Hold in Automotive Industry With New Switches

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Broadcom (AVGO - Free Report) recently introduced a portfolio of Ethernet switches, BCM8956X, to facilitate emerging automotive applications, in particular. Further, the company also began shipping of BCM8988X for in-car networking applications.

The latest launch offer enhanced security and flexibility, consequently addressing the growing demand for bandwidth and accelerating workloads (automating processes as required) in real time.

The BCM8956X offers highly-optimized switches which integrate 100BASE-T1 and 1000BASE-T1 PHY. It offers high bandwidth and low latency attributes, which in turn bolsters network performance. Its hardware security module (HSM) block provides deep inspection and multilevel security, making it a preferred option for automotivecomputing architecture and connected vehicles.

The latest BCM8988X is powered by 1000BASE-T1 PHY transceiver device, offering higher EMC and EMI performance, low power consumption, strong signal connectivity and fast link-up time. These features make it a preferred option over UTP cables.

With the new offerings, Broadcom attempts to simplify operations through robust data management methods which bode well.

Broadcom Inc. Price and Consensus

Broadcom Inc. Price and Consensus | Broadcom Inc. Quote

Growth Prospects Hold Promise

High-speed data requirements, emerging connected systems and accelerated 5G deployment are paving the way for robust in-vehicle technologies, in turn driving consumer demand for smart vehicles.

According to the senior director of marketing at Broadcom, Ali Abaye, “With the availability of Broadcom’s industry leading secure multilayer switch and Gigabit PHY, automotive manufacturers can now design and build a gamut of Gigabit Ethernet systems to address high speed secure networking applications.”

Notably, Broadcom is capitalizing on growing demand for connected vehicles by offering high speed Automotive Ethernet developments for new applications such as 5G, artificial intelligence (AI) and autonomous driving.

Per IHS Markit data, sales of connected cars will exceed 72 million units by 2023 from 24 million in 2015. Further, Allied Market Research estimates the global autonomous vehicle market is likely to reach $556.7 billion in 2026 at a CAGR of 39.5% during 2019-2026.

Notably, growth projections favor company’s prospects in the long term. Moreover, Broadcom’s expanding product portfolio is expected to strengthen presence across high-growth markets, comprising Internet of Things (IoT), AI, Automotive, Smart Home and Enterprise. This bodes well for the company.

Zacks Rank and Stocks to Consider

Currently, Broadcom carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Cadence Design Systems, Inc (CDNS - Free Report) , Synopsys, Inc. (SNPS - Free Report) and Symantec Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cadence Design, Synopsys and Symantec have long-term earnings growth rates of 12%, 10% and 7.9%, respectively.

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