Broadcom Chipset Fuels FS's High-Performance AI Networking Solutions

On Wednesday, ICT products and solutions provider FS announced its latest 400G and 800G Ethernet switches, powered by Broadcom Inc’s 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 GOOG GOOGL and Meta Platforms Inc 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 XLK and iShares Russell 1000 Growth ETF IWF.

Price Action: AVGO stock is down 1.06% at $172.98 premarket at the last check Wednesday.

Also Read:

• AI-Driven Chipmakers Like Nvidia and Broadcom Rally After Fed’s Interest Rate Slash

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