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PALO ALTO, Calif. - Broadcom Inc. (NASDAQ:AVGO), a prominent player in the Semiconductors industry with a market capitalization of $947 billion and impressive 75.2% gross profit margin, has launched a new line of Emulex Secure Fibre Channel Host Bus Adapters (HBAs) designed to encrypt data on the move between servers and storage arrays. This solution comes in response to the increasing threat and costs associated with ransomware attacks, which averaged $5.37 million per incident in 2024.
The Emulex Secure HBAs are presented as a cost-effective and easy-to-manage solution that complies with stringent cybersecurity mandates, such as the United States' Commercial National Security Algorithm (CNSA) 2.0 and the European Union's Network and Information Security (NIS) 2 Directive. According to InvestingPro data, Broadcom's strong innovation capabilities are supported by its robust revenue of $51.57 billion in the last twelve months, demonstrating its capacity for continued technological advancement. These adapters employ zero trust architecture and post-quantum cryptographic encryption algorithms, ensuring data security amidst growing concerns over the potential risks posed by generative AI and quantum computing technologies.
The new HBAs offer several advantages over application-based encryption, including the preservation of storage array services like deduplication and compression, which are typically compromised by application-based encryption. Moreover, network encryption facilitates real-time ransomware detection, a feature not available with application-based encryption that can obscure ransomware attacks.
According to Jeff Hoogenboom, vice president and general manager of Emulex Connectivity Division at Broadcom, the Emulex Secure Host Bus Adapter addresses the need for robust data protection and compliance with new government regulations by delivering a simple solution that encrypts data across all applications once installed.
In an evaluation, Brian Beeler, president of StorageReview.com, noted the HBAs' effectiveness in securing in-flight SAN data encryption without hindering performance, anticipating that these adapters will become a standard component of SAN security.
The Emulex Secure HBAs are designed to operate on existing Fibre Channel infrastructures and are available in 1, 2, and 4 port configurations. They support the NIST 800-193 framework, featuring secure boot, digitally signed drivers, and more. The adapters also offer easy management and deployment with session-based key management and compatibility with current operating systems, applications, and SAN management tools.
Broadcom, a global technology leader headquartered in Palo Alto, CA, emphasizes that these HBAs are shipping now and are available for further information on their website. Based on InvestingPro analysis, which includes over 30 additional key metrics and insights available to subscribers, the company currently appears overvalued compared to its Fair Value. Investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, for detailed analysis of Broadcom's financial health, market position, and growth prospects.
In other recent news, significant developments have been made in the tech sector. A $100 billion joint venture has been announced involving SoftBank (TYO:9984) Group Corp., OpenAI, and Oracle Corp (NYSE:ORCL). aiming to fund AI infrastructure. The venture, led by SoftBank and OpenAI, plans to construct the first computing system in Texas, with tech support from Arm Holdings (NASDAQ:ARM) Plc, Microsoft Corp (NASDAQ:MSFT)., and Nvidia Corp . (NASDAQ:NVDA)
Broadcom Inc., a key player in the semiconductor industry, has launched the Brocade G710 switch, a low-latency SAN switch designed for small to mid-sized businesses. This new product is part of Broadcom's recent financial strategy, which includes the termination of its existing credit agreement and the establishment of a new $7.5 billion unsecured revolving credit facility. Broadcom's fiscal fourth-quarter 2024 revenues were reported at $14.1 billion with earnings per share of $1.42, and the company projects revenues of $14.6 billion for the first quarter of fiscal year 2025.
Analysts from UBS, Bernstein SocGen Group, and Citi have expressed optimism about Broadcom's prospects, citing a positive outlook on the company's AI revenue streams. Meanwhile, Bernstein analysts maintained an Outperform rating on NVIDIA shares, suggesting that NVIDIA's H20 shipments to China are likely to remain unaffected by new U.S. export controls. These recent developments reflect a positive outlook on the impact of AI on the tech sector and the potential for significant growth in the US economy.
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