Broadcom AVGO recently announced the delivery of its Trident 4C Ethernet switch ASIC, a 12.8 terabits/second security switch, capable of analyzing all traffic at line rate. Trident 4C detects flow anomalies in real time as part of cyber-threat defense.
With the advent of cloud computing, hybrid work environment and big data demand for bandwidth is increasing rapidly. Security analytics has been forced to date to rely on statistical sampling to check cyber threats. Traditionally, one random packet out of a thousand gets analyzed while the remaining goes unchecked. This poses a severe cyber threat.
To address this issue, Broadcom developed the Trident 4C switch, which replaces random sampling with 100% inspection of data traffic, even at extreme bandwidths.
The Trident 4C offers connection-aware monitoring of 500k+ active flows at 5.4 billion packets/second, about 4 million state flow metrics counters set by a programmable arithmetic engine and the feature is suited for fixed-configuration and chassis-based designs.
The Trident 4C is a natural extension of its portfolio of switch series that allows AVGO to help customers handle data with rising network bandwidth.
Broadcom Inc. Price and Consensus
Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote
Broadcom Expands Portfolio to Drive Top Line
Broadcom is looking to diversify its business operations to address certain key megatrends and changes in the market like rising demand for cloud infrastructure to protect its revenues from the prevalent supply-chain constraints in the semiconductor industry and the intensifying geopolitical tensions.
Even though Broadcom’s semiconductor solutions revenues totaled $6.23 billion in second-quarter 2022, up 29.2% year over year, investors are wary of its top-line growth due to the current macroeconomic issues.
Broadcom, which currently carries a Zacks Rank #3 (Hold), has fallen 24.3% in the year-to-date period compared with the Zacks Electronics - Semiconductors decline of 30.9%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
To diversify its products offerings, Broadcom has been expanding its switch series for a while to address one of the most prevalent issues in the market currently, to accurately and securely handle growing network bandwidth.
Broadcom, prior to its announcement of delivery of its Trident 4C Ethernet switch, announced the delivery of StrataXGS Tomahawk switch series, which provides the world’s first 51.2 terabits/second of ethernet switching capacity. This is expected to help data centers unify networking infrastructure with the help of AI and machine learning, and handle growing network bandwidth.
To diversify its product offering, Broadcom is also building strategic partnerships with companies like Tencent TCEHY to accelerate the adoption of high bandwidth co-packaged optics (CPO) network switches for supporting cloud infrastructure.
Under this partnership, Broadcom will provide the 25.6-Tbps Humboldt CPO switch device that features its StrataXGS Tomahawk 4 switch chip, directly co-packaged with the four 3.2-Tbps Silicon Photonics Chiplets In Package (SCIP) optical engines.
Tencent built the system architecture and helped Broadcom develop hardware and software for the field deployment of the 25.6-Tbps CPO switch system.
However, AVGO is facing rising competition from companies like Cisco CSCO in the broader tech sector.
Cisco also recently expanded its business partnership with General Dynamics Information Technology (GDIT), a business unit of General Dynamics.
To reach out to more customers, Cisco is strategically forging relationships with other companies. Cisco and GDIT are expanding their partnership of 30 plus years to address rising demand for IoT in different government organizations.
The growing adoption of cloud infrastructure attracted various tech companies to operate in the cloud infrastructure industry.
This prompted the industry to demand high bandwidth network switches, which can be deployed at a lower cost and reduce power consumption.
However, rising demand for network bandwidth is also increasing security threats. Evidently, demand for AVGO’s Trident 4C Ethernet switch ASIC and co-packaged opticssolutions is expected to increase, which in turn, will help driving AVGO’s top-line growth.
Also, AVGO is investing heavily in executing a host of strategic acquisitions to penetrate the cloud solutions market.
Broadcom announced that it is acquiring VMware VMW for $60 billion to snap up one of the biggest takeover deals of the year.
VMware is a pioneer in virtualization software that consolidates applications and programs on a smaller number of servers. VMW will help Broadcom tap the hybrid cloud market and aid in its top-line growth in the coming quarters.
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