One of the kings of the semiconductor industry, Broadcom (NASDAQ: AVGO), has a new product on the way. However, it is not one of the company’s vaunted custom AI accelerators, which it refers to as XPUs. Broadcom also has an extensive business in developing chipsets for Ethernet network switching and routing. These products dictate the flow of information within a data center, acting like directors of data traffic.
This ties into a company like Arista Networks (NYSE: ANET). Arista makes actual Ethernet switches and routers. The company’s strong product line in this space has allowed it to amass a large customer base among AI data center operators. One key component needed for building Arista’s switches and routers is the chips used inside them. Arista buys these chips from Broadcom. Arista noted in a Jun. 2024 press release that its 7060X6 AI Leaf switch uses Broadcom’s Tomahawk 5 chip. Now, Broadcom is getting ready to release Tomahawk 6.
