Broadcom Launches Secure Fibre Channel HBA, Boosting Data Encryption To Combat Rising Cyber Threats

Broadcom Inc AVGO announced Emulex Secure Fibre Channel Host Bus Adapters (HBA) on Wednesday. This cost-effective, easy-to-manage solution encrypts all data as it moves between servers and storage.

The cost of ransomware attacks continues to rise, with attacks in 2024 costing an average of $5.37 million per attack.

Also Read: Apple’s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst

Upcoming generative AI and quantum computers magnify the risk if data is not encrypted at all points in the data center, including the network.

To address these cybersecurity issues, governments have responded with mandates that require enterprises to modernize their IT infrastructures with post-quantum cryptographic encryption algorithms and zero-trust architecture.

Today, data centers can deploy application encryption or network encryption to protect their data.

Network encryption offers several advantages over application-based encryption, including preserving storage array services.

Network encryption enables real-time ransomware detection, while application-based encryption hides ransomware attacks.

Reportedly, quantum computers can threaten data security and privacy for various enterprises.

Broadcom stock surged over 70% in the last 12 months, joining Nvidia Corp NVDA and Taiwan Semiconductor Manufacturing Co TSM in the trillion-dollar market cap club in 2024.

Needham’s N. Quinn Bolton projected upside for Broadcom from growth in XPUs.

JPMorgan’s Harlan Sur expects Broadcom to gain from DeepSeek’s emergence as hyperscalers and cloud providers continue to push for greater AI capabilities, with cost and power performance becoming critical differentiators.

Investors can gain exposure to Broadcom through Vanguard Div Appreciation ETF VIG and Vanguard Information Tech ETF VGT.

Price Actions: AVGO stock traded higher by 1.86% at $211.22 premarket at the last check on Wednesday.

Also Read:

• Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue

Photo: Shutterstock