Broadcom Inc. (NASDAQ:AVGO) on Tuesday announced the launch of its first-ever Wi-Fi 8 access point (AP) and switch solution, designed for AI-driven enterprise networks.
• Broadcom shares are sliding. Why is AVGO stock dropping?
Broadcom Unveils First Wi-Fi 8 AP and Switch for AI-Driven Enterprise Networks
The new platform aims to optimize wireless networking and AI processing at the enterprise level, enhancing both performance and security.
Wi-Fi 8 Solution Integrates AI and High-Performance Networking
The Wi-Fi 8 solution integrates Broadcom’s new BCM49438 chip, combining AI acceleration with high-performance networking, paired with advanced security features like MACsec for end-to-end protection.
The solution also includes real-time analytics, AI model acceleration and the ability to support high-density Wi-Fi 8 deployments.
Broadcom’s new switch platform, Trident X3+, complements the AP solution by providing up to 48 multi-gigabit ports, designed for high-density deployments and offering end-to-end security and optimized power efficiency.
The unified architecture offers enhanced telemetry, low-latency communication and the potential for smarter AI-powered operations.
Strong Market Position and Analyst Optimism for Broadcom
Broadcom stock gained 44% in the last 12 months.
Analysts are increasingly positive on Broadcom as AI adoption grows and hyperscaler demand tightens supply chains.
TD Cowen analysts, led by Joshua Buchalter, cited rising demand for its chips driven by AI.
KeyBanc’s John Vinh also highlighted Broadcom as a major beneficiary of the custom silicon boom, particularly as hyperscalers lock in memory capacity and scale AI programs such as tensor processing units.
RBC Capital Markets sees the AI cycle continuing strongly. It did raise concerns about valuation and margin pressures for Broadcom, despite momentum in custom accelerators.
Counterpoint Research expects Broadcom to maintain its lead in AI server compute Application-Specific Integrated Circuits (ASICs), projecting the company will hold about 60% of the market share by 2027.
Despite increasing competition from the Alphabet Inc (NASDAQ:GOOGL) Google–MediaTek partnership, Broadcom’s strong position is backed by its ability to meet the growing demand for custom AI chips from hyperscalers such as Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT).
Broadcom’s deep expertise in silicon design and its consistent track record of design wins are expected to help it continue outperforming rivals in the rapidly expanding AI chip market.
AVGO Price Action: Broadcom shares were down 4.87% at $315 at publication on Tuesday, according to Benzinga Pro data.
Photo: Piotr Swat on Shutterstock
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