Broadcom Inc
These advancements in Broadcom's cutting-edge optics technologies are designed to provide high-speed interconnects for the front-end and back-end networks of extensive generative AI compute clusters.
The highlights of the announcement include the production release of a 200-Gbps per lane (200G/lane) electro-absorption modulated laser (EML) designed to complement next-generation GPUs and the unveiling of the industry's first 200G/lane vertical-cavity surface-emitting laser (VCSEL).
Additionally, Broadcom demonstrated a continuous wave (CW) laser characterized by high efficiency and high linearity for silicon photonics (SiPh) modulation at 200G and reported the shipment of over 20 million channels of 100G/lane high-speed optical components for use in AI/ML systems.
"We expect shipments of 8x100G optical transceivers to exceed 5 million units in 2024 and first 8x200G modules delivered to customers by the end of the year," commented Dr. Vladimir Kozlov, founder and CEO of LightCounting Market Research. "Google and Nvidia will be the first adopters of 200G per lane optics for interconnecting GPUs and TPUs in AI Clusters - the hottest area of the market now."
Broadcom expects $10 billion in AI chip sales in 2024.
Citi analyst Christopher Danely reiterated a Buy rating on Broadcom with a price target of $1,560.
The analyst held an investor meeting with Broadcom CEO Hock Tan, who stated that AI spending does not appear to be slowing down with demand growth from its AI accelerator and networking products.
The company views the AI TAM of $400 billion as achievable and believes the growth of custom ASICs is more sustainable than the growth of GPUs, as per the analyst.
He noted that AVGO could experience an upside from AI and the VMware acquisition (23% of fiscal 2024 sales).
Investors can gain exposure to Broadcom via Pacer Funds Pacer Data And Digital Revolution ETF
Price Actions: AVGO shares traded lower by 2.39% at $1,260.49 on the last check Wednesday.
