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PALO ALTO - Broadcom Inc. (NASDAQ:AVGO) announced on Wednesday the release of its Brocade X8 Directors and Brocade G820 56-port switch, which the company describes as the industry’s first 128G Fibre Channel platforms designed for mission-critical and enterprise AI applications. The semiconductor giant, with a market capitalization of $1.61 trillion and impressive 77.19% gross profit margins, continues to strengthen its position as a prominent player in the tech infrastructure space.
The new Gen 8 Fibre Channel portfolio features quantum-resistant 256-bit encryption and post-quantum cryptography algorithms aimed at protecting data from future quantum computing threats. The platforms also incorporate embedded SAN AI technology for automated infrastructure management. This innovation comes as Broadcom maintains strong financial momentum, with revenue growing 28.01% to $59.93 billion in the last twelve months, according to InvestingPro data, which rates the company’s overall financial health as "GREAT" with a score of 3.02 out of 5.
"These new 128G platforms establish a robust foundation for mission-critical and enterprise AI workloads," said Dennis Makishima, vice president and general manager of Brocade Storage Networking at Broadcom.
The Brocade X8 Directors support up to 384 ports running at 128G, while the Brocade G820 switch offers 56 128G SFP+ ports in a 1U form factor. Both products are designed to address performance demands of data-intensive applications.
Key features of the new platforms include AI-powered autonomy that adapts to changing environments, SAN Fabric Intelligence for end-to-end visibility, and Adaptive Traffic Optimizer for dynamic load balancing.
Both products are available immediately, with OEM partners expected to begin shipping the technology over the next few quarters.
Several industry partners, including Dell Technologies, H3C, Hitachi Vantara, HPE, IBM, Lenovo, NetApp, and TG Stor, provided statements supporting the launch.
The announcement comes as organizations face growing demands from AI workloads and increased security concerns, according to the company’s press release statement.
In other recent news, Microsoft is planning to enhance its semiconductor initiatives by utilizing OpenAI’s custom AI chip designs. CEO Satya Nadella mentioned that Microsoft aims to first implement these innovations for OpenAI and then expand them for its own use. Meanwhile, Broadcom has been the focus of several analyst upgrades due to its involvement in artificial intelligence. Jefferies increased its price target for Broadcom to $480, highlighting the growth potential in the company’s ASIC business, particularly with Google as a major customer. Mizuho also raised its price target for Broadcom to $435, citing a significant deal with Anthropic, expected to generate $10 billion in revenue. Additionally, Evercore ISI adjusted its target for Broadcom to $403 following a deal with OpenAI to deploy custom AI accelerators. Broadcom also announced the launch of the Thor Ultra, the industry’s first 800G AI Ethernet Network Interface Card, which aims to enhance connectivity for large-scale AI workloads. These developments indicate a strong focus on AI advancements across both Microsoft and Broadcom.
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