Broadcom Inc Stock Price, News & Analysis

Broadcom (NASDAQ: AVGO) showcases industry-first solutions for AI/ML workloads at the 2022 OCP Global Summit in San Jose. The company emphasizes its commitment to open computing, unveiling an open end-to-end networking solution optimized for Remote Direct Memory Access (RDMA) over converged Ethernet (RoCE). Broadcom's Tomahawk 5 Ethernet switch enhances AI/ML workload virtualization, while the firm showcases various technologies including Ethernet switches, PCIe switches, and storage solutions, reinforcing its leadership in the data center market.

Broadcom Inc. (NASDAQ: AVGO) has expanded its storage connectivity solutions, enhancing performance and capabilities for hyperscale data centers amid growing demand for video content. The updated portfolio includes advanced products like the 51TB Ethernet Switch Tomahawk 5 and 200G Ethernet RDMA NICs, designed to provide better power efficiency and latency. These innovations aim to support data centers managing large-scale video storage, focusing on security and interoperability, thus positioning Broadcom as a leader in the video storage connectivity market.

Broadcom has launched the first open end-to-end networking solution optimized for Remote Direct Memory Access (RDMA) over Converged Ethernet. This collaboration with Arista enables hyperscaler and enterprise data center operators to achieve ultra-low latency in their networks. The new solution combines Broadcom's Ethernet NIC and switch technology, demonstrating improvements in congestion control and bandwidth. Comprehensive documentation is also provided to assist customers in deployment and management, marking a significant evolution in the RoCE ecosystem.

Broadcom Inc. (NASDAQ: AVGO) announced that its 8.00% Mandatory Convertible Preferred Stock, Series A, will automatically convert to shares of Common Stock on September 30, 2022. The adjusted Minimum Conversion Rate is 3.1149 shares per Preferred Stock, while the Maximum Conversion Rate is 3.6407 shares. Additionally, holders of record will receive a final quarterly cash dividend of $20.00 per share on the Preferred Stock on the same date. This conversion is in accordance with the Certificate of Designations dated September 30, 2019.

Broadcom Inc. (NASDAQ:AVGO) has announced the launch of its Trident 4C Ethernet switch ASIC, achieving 12.8 terabits per second with the capability of real-time flow anomaly detection. This innovative technology replaces traditional statistical sampling, ensuring 100% traffic inspection, which is critical for enhancing cybersecurity. The Trident 4C features an advanced analytics engine, capable of conducting 170 billion operations per second, without compromising switch performance. Broadcom is already shipping devices to qualified customers, marking a significant step in high-capacity network security solutions.

Broadcom reported a strong third quarter for FY22, with revenue of $8.464 billion, up 25% year-over-year, and GAAP net income of $3.074 billion, translating to a GAAP diluted EPS of $7.15. The company generated $4.424 billion in cash from operations, resulting in free cash flow of $4.308 billion, or 51% of revenue. Going forward, Broadcom expects fourth quarter revenue of approximately $8.9 billion, a 20% increase from last year. The Board declared a quarterly dividend of $4.10 per share.

Broadcom has announced a strategic partnership with Tencent to introduce the industry's first 25.6-Tbps CPO switch, enhancing high bandwidth solutions for cloud infrastructure. The switch integrates Broadcom's advanced Tomahawk 4 chip and four 3.2-Tbps optical engines, promising over 50% power savings compared to traditional options. The product will be showcased at the upcoming China International Optoelectronic Exposition from September 7-9. This collaboration aims to address increasing demands for bandwidth in AI, ML, and HPC applications while improving power efficiency.

Broadcom Inc. has launched the StrataXGS Tomahawk 5 switch series, achieving a historic milestone with a bandwidth of 51.2 Tbps, doubling the capacity of current market offerings. This cutting-edge technology is designed to meet the growing demands of data centers, especially for AI/ML workloads. Key features include advanced Cognitive Routing and dynamic load balancing, significantly enhancing network efficiency. The Tomahawk 5 supports 64 ports of 800GbE and utilizes a highly energy-efficient 5nm die, setting a new standard for high-performance data center networking.

Broadcom Inc. (NASDAQ: AVGO) will report its third quarter fiscal year 2022 financial results on September 1, 2022, after market close. A conference call to discuss these results will take place at 2:00 PM PT. Investors can preregister for telephone access or listen live via the Broadcom website. This call will provide insights into the company’s financial performance and future business outlook, offering shareholders a detailed perspective on the semiconductor and infrastructure software industry.