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Broadcom’s New Networking Gear Aims To Resolve AI Data Center Bottlenecks

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Broadcom (AVGO) on Monday announced a new portfolio of scalable, high-performance, low-power networking and switching products to resolve connectivity bottlenecks in data centers running artificial intelligence applications. Broadcom stock rose early.




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The Palo Alto, Calif.-based company said its 400G PCIe Gen 5.0 Ethernet adapters will “revolutionize the data center ecosystem.”

The products offer an enhanced, open, standards-based Ethernet network interface card and switching solution for rapidly growing AI data centers.

“At Broadcom, we recognize the significance of fostering a power-efficient and highly connected data center for AI ecosystem,” Jas Tremblay, Broadcom’s vice president and general manager of the data center solutions group, said in a news release.

He added, “Broadcom is prioritizing open standards and fostering collaboration with industry leaders to deliver the most extensive selection of high-performance connectivity solutions for AI infrastructure.”

Broadcom Stock On IBD Tech Leaders List

In premarket trading on the stock market today, Broadcom stock rose a fraction to 1,397.50. Last week, Broadcom stock flirted with a buy point of 1,438.17 out of a 10-week consolidation pattern, according to IBD MarketSurge charts.

Broadcom’s latest networking chips use 5-nanometer process technology. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.

“As the industry races to deliver generative AI at scale, the immense volumes of data that must be processed to train LLMs (large language models) require even larger server clusters,” Patrick Moorhead, an analyst with Moor Insights and Strategy, said in a statement. “Ethernet presents a compelling case as the networking technology of choice for next generation AI workloads.”

The 400G PCIe Gen 5.0 Ethernet family is available from multiple server vendors, as well as from Broadcom.

Broadcom stock is on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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