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Broadcom's New Solutions to Enhance Data Center Performance

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Broadcom (AVGO - Free Report) recently unveiled the BCM81343 product family for 400G cloud networking to address every layer of the network. Notably, the platforms support 10G to 400G Ethernet with throughput, density and price performance.

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

The BCM8956X offers high bandwidth and low latency attributes, which in turn bolsters network performance. Its dual 400G MACSec PHYfeatureprovides deep inspection and multilevel security, making it a preferred option for automotive computing architecture and connected vehicles.

Broadcom’s BCM81343 supports IEEE’s (Institute of Electrical and Electronics Engineers) efforts to bring 5G Ethernet speeds to enterprise access points for high-speed networking over unshielded twisted-pair (UTP) cables. The addition of this latest device and 5G Ethernet link protocol speeds will enable cost-effective scaling of network bandwidth to enterprise networks.

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

The device specification leverages various fundamental technologies in Ethernet standards, enabling faster time to market with minimal research and development efforts from vendors. The new devices are powered by low-power 16nm CMOS technology, which will provide full benefits of next-generation 802. 1AE 256-bit MACSec wireless technology using the existing cabling infrastructure.

Broadcom is well positioned in the fast-growing wired and wireless communications markets, with cutting-edge solutions for a growing number of connected users, who are demanding more content and bandwidth. The company’s comprehensive product portfolio facilitates the implementation of high-performance, scalable and appropriate solutions for every environment.

Notably, shares of Broadcom have returned approximately 15.3% in a year, outperforming the industry’s growth of 4.7%.

Portfolio Strength Boosts Adoption

Broadcom is benefiting from strong demand for wireless solutions and expanding product portfolio, which positions it well to address the needs of rapidly growing technologies like the Internet of Things (IoT) and 5G.

Reportedly, Broadcom dominates the film bulk acoustic resonator (FBAR) filter market along with Qualcomm (QCOM - Free Report) . Expertise in the FBAR technology enables Broadcom to allow smartphones to function more efficiently in the congested RF spectrum.

Per a GrandViewResearch report, the RF components market is projected to hit $45.05 billion by 2025 at a CAGR of 14%. Notably, these factors favor the company’s prospects for the long term.

Moreover, Broadcom’s expanding product portfolio is expected to strengthen its presence across high-growth markets, comprising 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 Alibaba Group Holding Limited (BABA - Free Report) and Synopsys, Inc. (SNPS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alibaba and Synopsys have long-term earnings growth rates of 28% and 12%, respectively.

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