Broadcom's Cutting-Edge AI Networking Technology Leaves Nvidia, Marvell, Cisco Behind: JPMorgan
Portfolio Pulse from Surbhi Jain
Broadcom Inc. (NASDAQ: AVGO) is making significant strides in the datacenter and AI Ethernet switching market, holding an 80% market share. JPMorgan analyst Harlan Sur highlights Broadcom's innovation with its Tomahawk series, which is ahead of competitors like Nvidia, Marvell, and Cisco. Broadcom's AI networking silicon revenues are expected to triple in 2024, driven by the upcoming Tomahawk 6 chipset. The company is also working on the 2nm Tomahawk 7, ensuring it stays ahead in the market.
June 17, 2024 | 12:04 pm
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NEGATIVE IMPACT
Cisco Systems is over 12 months behind Broadcom in AI networking, which may impact its competitive position.
Cisco's significant lag behind Broadcom in the AI networking market could negatively impact its competitive position and stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Marvell Technology is over 12 months behind Broadcom in AI networking, which may affect its market position.
Marvell's significant lag behind Broadcom in the AI networking market could negatively impact its competitive position and stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Nvidia is trailing Broadcom by 9-12 months in the AI networking market, which may impact its competitive position.
Nvidia's lag behind Broadcom in the AI networking market could affect its competitive edge and potentially its stock performance in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Broadcom is expected to achieve notable gains, targeting a price of $2,000 by December, driven by its dominance in the datacenter and AI Ethernet switching market.
Broadcom's strong market position and innovative products like the Tomahawk series are expected to drive significant revenue growth, leading to a positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100