Thomagav 6 increases the potential of the BDOCOM News ad

Broadcom today

$ 169,12 -2.87 (-1.67%)

As of 03.28.2025 21:00

52-week range

$ 119.76

▼

$ 251.88

Dividend yield

1.40%

P/e ratio.

137.95

Value is valuable

$ 231.48

One of the kings of the semiconductor industry, Broadcom NASDAQ: AVGOIt has a new product on the way. Nevertheless, this is not one of the vaunted individual accelerators of the company, which he calls XPU. Broadcom also has an extensive business in the development of chipsets for switching and routing the Ethernet network. These products determine the flow of information at the data center, acting as director of data traffic.

This is due to such a company as Arista Networks NYSE: YesAriste makes actual switches and routers Ethernet. The strong line of company products in this space allowed it to assemble a large client base among the operators of the data center. One of the key components necessary for the construction of Aristista switches and routers is the chips used inside them. Arista buys these chips from Broadcom. In the press release Arista, it was noted that its 7060×6 AI leaf switch is using the Broadcom’s Tomahawk 5 chip. Now Broadcom is preparing to release Tomahawk 6.

So, what are Broadcom network chips, and what achievements reach Broadcom through Tomahawk 6? When Broadcom releases Tomahawk 6, and can it become an important growth factor for the company?

Broadcom network chips and Tomahawk 6 promotion

Broadcom has three main lines of network chips. Its Tomahawk line is specially designed for applications at the data center. The company also has network chips Trident and Jericho, which are designed for traditional business networks and service providers. Service suppliers belong to the suppliers of Internet services and telecommunication companies. Nevertheless, Broadcom also developed the Jericho 3 chip for applications for data processing centers.

The main attention of Broadcom in creating various network chips for different domains gives him an advantage over some other competitors. This helps to configure the functionality for using each client, creating an optimal solution for everyone.

The key feature of the network chips is their throughput that measures the volume of data that the network chip can process and transmit. As the processed chips become faster, hypersclassers should also improve the throughput of network chips in order to keep up.

Broadcom was noticeably able to double the bandwidth of each of its Tomahawk chips every two years, in accordance with the expected progress in accordance with the Law of Moore. Tomagavk 5 had a bandwidth of 51.2 tees per second (TB/S). Tomagav 6 almost doubles, with a bandwidth of 100 TB/s. Tomahawk 6 is a significant progress that allows you to transmit significantly more data every second.

Tomahawk 6: the key to capturing tens of billions in market opportunities

The vigor says that he “allocated” his Tomahawk 6 chip. This indicates that the design stage has ended and that the manufacturer is currently producing a chip. Broadcom states that over the next few months will send samples to its customers. Tomagavk took 5 months after the initial sample, until it began delivery in volume. Thus, it is unlikely that Tomahawk 6 will contribute to the income of Broadcom in 2025.

Nevertheless, Tomahawk 6 is important for the long -term prospects of company growth. Broadcom has three hyper clients who want to have 1 million XPU clusters by the end of 2027. The increase in the throughput of Tomahawk 6 is vital in order to allow customers to hyperssclasely achieve these high computers deployment goals. Increased processing power will generate more data that is necessary to transmit network chips.

Broadcom sees that these three clients bring a common working target market (SAM) in 2027 in 2027 in the amount of $ 60 billion. USA. This is from 110% to 165% of the company’s income over the past 12 months. Although it is important to note that Broadcom does not necessarily expect to cover all this opportunity.

Nevertheless, he thinks that this can capture a significant part of this. Broadcom says that the AI ​​mixture between its XPU and network chips is approximately 70/30. This shows how network interaction is by no means a small participant in Broadcom’s AI business and how Tomahawk can help stimulate growth.

AVGO: Do not forget about the network in this story of artificial intelligence growth

In general, the next generation of Tomahawk 6 is connected with its entire strategy to support artificial intelligence hyperspes. Broadcom, in particular, has many opportunities to benefit from the proliferation of AI, including its processing and network chips.

The mass SAM, which the company sees among three customers in the not so stable future, shows that the general story of Broadcom growth remains strong. MarketBeat tracks 27 Wall analysts -Stezing with estimates on Broadcom, 25 purchases and 2 deductions.

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