Broadcom on Tuesday introduced a new chip that it claims offers the industry's highest performance for artificial intelligence networks. AVGO stock has gotten a boost this year from its AI chips.
The company's Jericho3-AI system-on-chip can deliver significantly shorter job completion times for any AI workload, Broadcom said in a news release.
"The benchmark for AI networking is reducing the time and effort it takes to complete the training and inference of large-scale AI models," Ram Velaga, senior vice president and general manager for Broadcom's Core Switching Group, said in a written statement.
He added, "Jericho3-AI delivers significant reduction in job completion time compared to any other alternative in the market."
Broadcom says its new system-on-chip completes AI workloads 10% faster than InfiniBand-based network systems.
The Jericho3-AI system offers 26 petabits per second of Ethernet bandwidth. That's almost four times the bandwidth of the previous generation. It also operates at 40% lower power per gigabit.
AVGO Stock On The Rise
On the stock market today, Broadcom stock rose 0.8% to close at 632.32. Meanwhile, AVGO stock is up 13.1% year to date through Tuesday's close, vs. an 8.2% gain for the S&P 500.
Broadcom's Jericho3-AI comes to market as investment in AI systems by cloud computing providers is skyrocketing. Market research firm IDC predicts that global spending on AI will reach $154 billion in 2023 and at least $300 billion by 2026.
"Cloud operators will upgrade their AI infrastructure to address the massive growth in bandwidth, driven by a new generation of high-capacity GPUs (graphics processing units) and the emergence of large language models," Bob Wheeler, principal analyst at Wheeler's Network, said in a written statement.
He added, "Jericho3-AI offers a high-bandwidth, low-latency and low-power choice for networks connecting tens of thousands of GPUs, revolutionizing the economics of building and maintaining AI clusters for this exciting new era."
Broadcom On Two IBD Stock Lists
Broadcom stock is tied for first place in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. The fabless chipmaker group ranks first out of 197 industry groups that IBD tracks. Also, AVGO stock has a best-possible IBD Composite Rating of 99.
Further, AVGO stock is on the IBD Tech Leaders and IBD Big Cap 20 lists.
In a positive development, AVGO stock has found support at its 50-day moving average line, according to IBD MarketSmith charts.
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