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PALO ALTO - Broadcom Inc. (NASDAQ:AVGO), a semiconductor powerhouse with impressive gross profit margins of 77.19% and annual revenue of $59.93 billion, announced on Tuesday its Thor Ultra, described as the industry’s first 800G AI Ethernet Network Interface Card (NIC) designed to interconnect large-scale XPU clusters for AI workloads.
The new NIC adopts the open Ultra Ethernet Consortium (UEC) specification and introduces several RDMA innovations including packet-level multipathing, out-of-order packet delivery, selective retransmission, and programmable congestion control algorithms. As a prominent player in the Semiconductors & Semiconductor Equipment industry according to InvestingPro, Broadcom continues to strengthen its market position through innovative solutions.
"Thor Ultra delivers on the vision of Ultra Ethernet Consortium for modernizing RDMA for large AI clusters," said Ram Velaga, senior vice president and general manager of the Core Switching Group at Broadcom.
The product is available in standard PCIe CEM and OCP 3.0 form factors, featuring 200G or 100G PAM4 SerDes with support for long-reach passive copper. It includes a PCI Express Gen6 x16 host interface and line-rate encryption and decryption capabilities.
Thor Ultra is designed to work with any XPU, optics, or switches, reducing dependency on proprietary solutions. It complements Broadcom’s existing Ethernet AI networking portfolio, which includes Tomahawk 6, Tomahawk 6-Davisson, Tomahawk Ultra, Jericho 4, and Scale-Up Ethernet products.
The company stated that Thor Ultra is now sampling to customers. According to the press release statement, multiple industry partners including Arista Networks, Dell Technologies, HPE Networking, and Lenovo have expressed support for the new product.
Broadcom Inc. is a global technology company headquartered in Palo Alto, California, that designs and supplies semiconductor and infrastructure software solutions. With a market capitalization of $1.68 trillion and strong market performance, including a 100.8% price return over the past six months, the company shows robust growth potential. For detailed analysis and additional insights, including Fair Value estimates and 20+ exclusive ProTips, visit InvestingPro.
In other recent news, Broadcom Limited has been the focus of multiple analyst updates following its strategic partnership with OpenAI. This collaboration involves the deployment of 10 gigawatts of infrastructure, set to begin in the second half of 2026 and continue through 2029. Analysts have responded positively, with UBS raising its price target for Broadcom to $415, maintaining a Buy rating, and citing increased AI demand. Similarly, Deutsche Bank increased its price target to $400, also maintaining a Buy rating, due to the anticipated benefits from the OpenAI deal.
Mizuho further raised its price target to $430, maintaining an Outperform rating and highlighting the potential significant revenue impact from OpenAI’s custom ASIC partnership. Bernstein reiterated an Outperform rating with a $400 price target, pointing to potential earnings growth driven by artificial intelligence, despite expectations of slightly lower margins. Oppenheimer also reiterated its Outperform rating with a price target of $360, emphasizing the strategic nature of the partnership. These developments underscore the significant interest and potential financial impact anticipated from Broadcom’s involvement in AI infrastructure expansion.
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