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PALO ALTO, Calif. - Broadcom Inc. (NASDAQ:AVGO), a prominent player in the Semiconductors industry with a market capitalization of $1.17 trillion and impressive gross profit margins of 76%, today announced the release of the Tomahawk 6 switch series, which it claims is the world’s first to achieve 102.4 terabits per second (Tbps) of switching capacity on a single chip. According to InvestingPro data, the company’s stock is currently trading near its 52-week high, reflecting strong investor confidence in its technological leadership. This capacity is purportedly double that of any existing Ethernet switch on the market. Designed with a focus on the demands of artificial intelligence (AI) networks, the Tomahawk 6 offers features such as energy efficiency, AI-optimized routing, and flexible connectivity options including support for 100G/200G SerDes and co-packaged optics (CPO).
The Tomahawk 6 is engineered to support the creation of large-scale AI clusters, with the capability to accommodate networks exceeding one million processing units, commonly referred to as XPUs. This innovation comes as Broadcom demonstrates strong financial performance, with revenue growing 40.3% to $54.53 billion in the last twelve months. Broadcom’s senior vice president and general manager of the Core Switching Group, Ram Velaga, stated that the Tomahawk 6 represents a breakthrough in AI infrastructure design, integrating high bandwidth, power efficiency, and adaptive routing features into a single platform.
The chip’s architecture is designed to unify networks for AI training and inference at an unprecedented scale, with Cognitive Routing 2.0 providing advanced telemetry and dynamic congestion control. This is expected to facilitate global load balancing and adaptive flow control tailored for modern AI workloads.
Broadcom has also contributed to the open-source community by announcing the Scale Up Ethernet (SUE) Framework at the Open Compute Project (OCP) Dublin in April 2025. This technology is intended to foster an open ecosystem for efficient scale-up interfaces for XPUs and network interface cards (NICs).
The Tomahawk 6 series is presented as a comprehensive solution for next-generation AI infrastructure, with Broadcom emphasizing its commitment to enabling Ethernet for both scale-up and scale-out applications. The switch is compliant with Ultra Ethernet Consortium specifications and supports a variety of network topologies.
The announcement also highlighted industry support for the Tomahawk 6, with comments from leaders at companies such as AMD, Arista Networks, and Juniper Networks, among others, who are looking forward to leveraging the new technology in their products and services. For investors seeking deeper insights into Broadcom’s market position and growth potential, InvestingPro offers comprehensive analysis with over 20 additional ProTips and detailed financial metrics, including exclusive Fair Value calculations and industry comparisons.
Broadcom’s release of the Tomahawk 6 series is poised to have a significant impact on the deployment of large AI clusters, offering a new level of performance and scalability for hyperscale data centers. The digital launch event for Tomahawk 6 is scheduled for today at 9:00 AM PDT / 12:00 PM EDT, featuring insights from Broadcom and industry experts. This information is based on a press release statement from Broadcom Inc.
In other recent news, Broadcom Limited is capturing attention with several significant developments. Citi analysts have raised their price target for Broadcom to $276, maintaining a Buy rating, ahead of the company’s fiscal second-quarter 2025 results. This optimism is driven by strong performance in Broadcom’s AI segment, projected to account for 30% of fiscal 2025 sales. Meanwhile, Melius has reiterated its Buy rating with a $283 price target, highlighting Broadcom’s strength in the Networking division, which accounts for 31% of its revenues, particularly through AI accelerators and networking chips.
Redburn-Atlantic initiated coverage with a Buy rating and a $301 price target, emphasizing Broadcom’s robust customer pipeline and recent acquisition of VMware, which positions the company in the private cloud market. Mizuho also raised its price target to $300 while maintaining an Outperform rating, pointing to Broadcom’s AI Custom Silicon as a major revenue contributor. This growth is supported by Broadcom’s advanced packaging technology and dominance in the networking space.
The company’s strategic collaborations with tech giants like Google, Meta, and OpenAI, as well as its leadership under CEO Hock Tan, are noted as key strengths. Broadcom’s diverse semiconductor and software solutions, coupled with strategic mergers and acquisitions, underline the firm’s confidence in its future performance.
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