On Wednesday, ICT products and solutions provider FS announced its latest 400G and 800G Ethernet switches, powered by Broadcom Inc's (NASDAQ:AVGO) Tomahawk 5 chipset, for the large AI clusters.
The switches are ideal for AI, big data, high-performance computing (HPC), and distributed storage.
FS introduced 400G and 800G AI switches with RoCE protocol support to handle large data volumes with low latency and high throughput.
Also Read: Broadcom Eyes $12B in AI Chip Revenue for 2024, Hyperscaler Spending Surge: Goldman Sachs
Broadcom stock has risen 110% in the last 12 months as it capitalized on the AI shift.
According to JPMorgan, Broadcom's AI business, which includes custom ASICs and networking solutions, will likely note a compound annual growth rate of 30%-40% over the next four to five years.
JPMorgan analyst Harlan Sur projected upside from higher demand for AI networking products and 3nm AI ASICs from hyperscalars like Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms Inc (NASDAQ:META).
Also, earlier this week, Broadcom launched Sian 2 digital signal processing (DSP) for high-performance AI data centers.
Investors can gain exposure to Broadcom through SPDR Select Sector Fund – Technology (NYSE:XLK) and iShares Russell 1000 Growth ETF (NYSE:IWF).
Price Action: AVGO stock is down 1.06% at $172.98 premarket at the last check Wednesday.
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- AI-Driven Chipmakers Like Nvidia and Broadcom Rally After Fed's Interest Rate Slash
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