Broadcom Introduces Next-Gen SIAN 2 DSP for AI-Driven Data Centers

Broadcom Unveils Next-Gen Sian 2 DSP For High Performance AI Data Centers - Broadcom (NASDAQ:AVGO)

Broadcom expects AI semiconductor revenue to hit $12 billion in 2024. On Monday, Broadcom Inc AVGO announced the launch of Sian 2, its 200 Gbps per lane (200G/lane) PAM-4 digital signal processing (DSP) PHY, building on the original Sian DSP. The Sian and Sian2 DSPs, power pluggable modules with 200G/lane interfaces, are essential for the next generation of AI clusters. Vijay Janapaty, vice president and general manager of the Physical Layer Products Division at Broadcom: "The Sian family of products reinforces Broadcom's leadership in optical DSP PHYs and enables our AI data center customers to deploy high-performance 800G and 1.6T links." Also Read: AMD vs. Nvidia: AMD's Surprising Strategy Shift in Gaming GPU Battle Broadcom reported third-quarter topline growth of 42% to $13.07 billion, topping the analyst consensus of $12.96 billion. The adjusted gross margin grew by 230 bps to 77.4%. Broadcom expects artificial intelligence semiconductor revenue to rise to $12 billion in fiscal 2024. Goldman Sachs analyst Toshiya Hari maintained its bullish take on the stock, citing the spending ramp-up by the large Tier-1 hyperscalers. The analyst flagged that the company is currently in the proof of concept (POC) stage with three hyperscale customers. Broadcom stock has increased 104% in the last 12 months. Investors can gain exposure to the stock through SPDR Select Sector Fund -- Technology XLK and iShares Russell 1000 Growth ETF IWF. Shares of Broadcom have an average 1-year price target of $534.17, representing an expected upside of 213.69%. Broadcom Stock Prediction For 2024 Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Broadcom, while 12 analysts have bullish ratings. The street high price target from Rosenblatt is $2400.0, while the street low from UBS is $170.0. Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock. Price Action: AVGO stock is down 0.61% at $170.09 at the last check on Monday. Also Read: Broadcom Analyst Lifts AI Revenue Forecast To $12B On Potential Strong Demand From Google, Meta Photo via Company Market News and Data brought to you by Benzinga APIs

Broadcom unveils 200G optical DSP for AI data centers By Investing.com

PALO ALTO, Calif. - Broadcom Inc. (NASDAQ: NASDAQ:AVGO) announced today the general availability of its Sian™2, a 200 Gbps per lane (200G/lane) PAM-4 DSP PHY, designed to enhance data center connectivity for AI applications. The Sian2 is an advancement over the existing Sian DSP, offering 200G/lane electrical and optical interfaces, which are crucial for the development of next-generation AI clusters. The company highlighted that the new DSP is a response to the growing demands for AI model sizes, which require high-performance, low-latency, and resilient connectivity. Sian2 promises to deliver on these needs by enabling 800G/1.6T links with 200G/lane optics, doubling the bandwidth while reducing power consumption, latency, and cost per bit. According to Broadcom, this development is foundational for high-speed optical links that are essential for scaling up and out network infrastructures in AI data centers. The Sian family of products, which includes Sian and Sian2, is optimized for 800G and 1.6T optical module platforms. Vijay Janapaty, vice president and general manager of the Physical Layer Products Division at Broadcom, stated that the Sian2 and Sian DSPs are designed to support the deployment of high-performance 800G and 1.6T links in AI data centers. The products are expected to be adopted by AI market leaders, with projections for the ramp-up of optical modules using 200G/lane beginning in 2025. Dr. Vlad Kozlov, CEO and Chief Analyst at LightCounting, commented on the rapid market demand, anticipating the delivery of over 1 million units of 1.6T optical transceivers within the first year of their introduction. The Sian2's features include a low power 5nm 200G/lane DSP solution, support for 800G and 1.6T pluggable modules, multiple FEC options, and built-in laser drivers. It also boasts sub-80ns roundtrip latency, which is particularly beneficial for AI/ML applications. Broadcom showcased the Sian2 PHY and 200G/lane optics at the ECOC Exhibition 2024 in Frankfurt, Germany, demonstrating the technology in 1.6T DR8 optical modules. The company is currently providing samples of the Sian2 BCM8582X device to select customers and partners. This announcement is based on a press release statement from Broadcom Inc. and aims to provide information on the latest technological advancements in optical DSP PHYs for AI data centers. In other recent news, Broadcom's third fiscal quarter earnings call revealed a 47% year-over-year increase in financial performance, with consolidated net revenue reaching $13.1 billion. TD Cowen maintained a Buy rating on Broadcom, emphasizing the company's progress in key growth areas such as Networking and AI. The firm also noted the successful integration of VMWare, which contributed $3.8 billion in revenue. Broadcom's partnership with Tower Semiconductor (NASDAQ:TSEM) for the production of Wi-Fi 7 RF front-end modules (FEMs) was also announced, presenting opportunities for enhanced mobile connectivity performance. Furthermore, KeyBanc Capital Markets maintained its Sector Weight rating on Apple (NASDAQ:AAPL), citing the introduction of Wi-Fi 7 across all new iPhone models as a potential benefit for Broadcom. Baird reiterated its Outperform rating on Broadcom, highlighting a revised AI-related revenue forecast for fiscal year 2024 of $12 billion, due to robust demand from major cloud service providers. These recent developments underscore Broadcom's strategic moves and potential for growth in the tech industry. InvestingPro Insights In light of Broadcom Inc.'s (NASDAQ: AVGO) latest technological release of the Sian™2 DSP PHY, it's pertinent to consider the company's financial health and market performance, which can provide investors with a broader context for its innovative activities. Broadcom's commitment to growth is reflected in analysts' positive outlook, anticipating sales growth in the current year. This is a testament to the company's robust position in the Semiconductors & Semiconductor Equipment industry, where it remains a prominent player. From a financial perspective, Broadcom's market capitalization stands at an impressive $799.14 billion, underscoring its significant presence in the market. The company's revenue growth over the last twelve months up to Q3 2024 has been remarkable, at 32.04%, indicating a strong upward trajectory in its financial performance. Furthermore, the company's P/E ratio, though high at 151.43, may reflect market expectations of future earnings growth, supported by a substantial gross profit margin of 74.71% during the same period. Investors looking for stability in returns may find comfort in Broadcom's consistent dividend payments, which have been maintained for 15 consecutive years. The dividend yield as of late 2024 stands at 1.24%, with a notable dividend growth of 15.22% over the last twelve months. This steady return to shareholders is an integral part of the company's financial strategy. For those interested in further insights and metrics, there are additional InvestingPro Tips available on Broadcom Inc., which can be found at https://www.investing.com/pro/AVGO. These tips delve deeper into the company's valuation multiples, debt levels, and analysts' earnings revisions, providing a comprehensive view for potential investors.