Broadcom launches industry's first F2F 3.5D custom accelerators for AI

From Nasdaq: 2024-12-06 10:20:00

Broadcom (AVGO) launches industry’s first Face-to-Face (F2F) 3.5D custom accelerators (XPU) for AI. Technology integrates compute, memory, and I/O capabilities for improved performance. Revenue expected to exceed $12 billion by fiscal 2024. Strong demand for custom AI accelerators, networking solutions, and optical lasers led to revenue growth in fiscal third quarter.

AVGO shares have surged 84.9% in the past year, outperforming sector and industry. Strong demand for networking products and Infrastructure software solutions from VMware acquisition. AVGO’s application-specific integrated chips (ASICs) support AI and machine learning for top-line growth. Earnings estimate for fiscal 2024 shows 13.95% year-over-year growth.

Broadcom’s expanding AI portfolio and rich partner base drive growth potential. Premium valuation due to Value Score of D and forward 12-month Price/Sales ratio of 13.10X. AVGO offers innovative PCIe connectivity solutions, high-performance AI fabric, and cutting-edge Ethernet adapters. Earnings estimate for fiscal 2024 shows 44.01% revenue growth.

AVGO stock not cheap, but premium valuation justified by strong growth potential. Zacks Rank #2 (Buy) with consistent earnings beats. Broadcom’s AI portfolio expansion and partnerships support future growth. Check out Zacks’ 7 best stocks for potential price pops. Earnings estimates and stock analysis available for AVGO, TSM, GOOGL, and META.



Read more at Nasdaq: AVGO Expands AI Portfolio With F2F 3.5D XPU: Is the Stock a Buy?