Broadcom Debuts New 50G PON Chips: What To Know

Broadcom Inc. AVGO announced on Monday the general availability of the BCM68660 and BCM55050 silicon 50G PON Optical Line Terminal-Optical Network Unit (OLT-ONU) devices. 

What To Know:

Broadcom describes its BCM68660 and BCM55050 as 50G PON Optical Line Terminal-Optical Network Unit (OLT-ONU) devices with an embedded neural processing unit (NPU), designed to accelerate artificial intelligence (AI) and machine learning (ML) at the edge and enable telecom operators to drive new applications on 50G fiber broadband networks. 

“Delivering dramatic cost and power savings, Broadcom’s 50G PON solution enables telcos worldwide to future-proof their networks and cost-effectively deploy 50G fiber broadband to drive the next generation of applications,” said Rich Nelson, senior vice president and general manager of the Broadband Video Group at Broadcom. 

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What Else: 

Broadcom announced it will showcase its vision of enabling AI infrastructure through its portfolio of Ethernet, Ethernet NIC Adapters, Co-Packaged Optics (CPO), PCIe switches and retimers and Sian2 optical networking products at the 2024 Open Compute Project (OCP) Global Summit from Oct. 15 through Oct. 17.

“AI is at an inflection point in our industry that will change our lives and the way we work,” said Charlie Kawwas, Ph. D., president, Semiconductor Solutions Group at Broadcom. 

“At Broadcom, we are on the front lines of this historic moment, pushing boundaries and pioneering breakthroughs in networking and connectivity to enable open, scalable and power efficient AI infrastructure. We are excited to showcase our products at the OCP Global Summit in collaboration with our partners who share our vision for enabling AI.”

According to data from Benzinga Pro, Broadcom shares have gained more than 30% over the past month and are trading above the stock’s 50-day moving average of $159.88. 

Is AVGO A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Broadcom, you'll notice that earnings in its last quarter grew 3.33% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Broadcom's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is grown 33.88% in the current quarter when compared with last year. That places it above similar businesses NVIDIA, Taiwan Semiconductor, Advanced Micro Devices in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Broadcom's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

AVGO Price Action: According to Benzinga Pro, Broadcom shares are up 2.11% at $178.77 at the time of publication Tuesday.

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