PALO ALTO, Calif. – Broadcom Inc. (NASDAQ:), the semiconductor giant with a market capitalization of over $1 trillion and impressive revenue growth of 44% over the last twelve months, has expanded its storage area network (SAN) portfolio with the launch of the Brocade G710 switch, designed for the needs of small and medium high performance enterprises and cyber resilient technology. According to InvestingProBroadcom maintains strong profitability with a gross margin of 75.2%, positioning it well for continued innovation in the semiconductor space. The new 24-port 64G switch, claimed to have the industry’s lowest latency and most energy-efficient design, is now available as a cost-effective entry point to Gen 7 Fiber Channel technology.
The Brocade G710 switch boasts a port-to-port latency of just 460 nanoseconds at 64G speed, setting a new standard in the industry. In addition, it offers low power consumption, typically around 65 watts, matching the growing demand for energy-efficient data center technologies.
According to Dennis Makishima, vice president and general manager of Brocade Storage Networking at Broadcom, the G710 switch integrates autonomous SAN capabilities to provide a cyber-resilient architecture that is easy to deploy and manage. The switch is designed to provide reliability, safety and performance, with a focus on uptime and optimal functioning even in challenging conditions.
For businesses concerned about scalability, the G710 can start with just eight ports and expand to 24 ports, supporting environments that demand growth. It also provides a total bandwidth of 1.5 Tb/s, meeting demanding applications and data storage needs.
Broadcom emphasizes six-nines (99.9999%) switch availability, which ensures minimal network downtime. The product’s self-healing and self-optimizing features are intended to maintain consistent network operations and performance. Security is a key feature of the G710, with controlled access, network isolation and a hardened operating system to protect against malware and hijacking attacks.
In terms of customer investment, Broadcom offers a lifetime warranty on the G710 switch, providing 24/7 access to technical experts and constant security patches and firmware updates, with the goal of protecting systems from new threats throughout their lifecycle.
The announcement not only focused on product features, but also highlighted the support of industry partners such as Dell Technologies (NYSE: ), Fujitsu Technology Systems, H3C, Hitachi (OTC: ) Vantara, HPE, IEIT SYSTEMS, Lenovo Infrastructure, NetApp (NASDAQ :), and TG Stor, who expressed support for the integration of the Brocade G710 into their offerings. With an incredible 105% return over the past year, Broadcom continues to show strong market performance. InvestingPro analysis shows that the stock is currently trading above its fair value, with 20 analysts recently revising their earnings expectations upwards. Investors looking for deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering this and more than 1,400 other top US stocks.
This article is based on a press release from Broadcom Inc. and does not include any additional analysis or commentary.
In other recent news, Broadcom Inc. has made significant strides in its financial strategy. The semiconductor giant recently terminated its existing credit agreement, establishing a new $7.5 billion unsecured revolving credit facility. Similarly, the company issued $3 billion in senior bonds to strengthen its financial structure. These developments are part of a broader strategic plan to optimize Broadcom’s capital structure.
On the earnings side, Broadcom reported fiscal fourth quarter 2024 revenue of $14.1 billion with earnings per share of $1.42. For the first quarter of fiscal year 2025, the company forecasts revenues of $14.6 billion and an EBITDA margin of approximately 66%.
Analyst firms expressed optimism about Broadcom’s prospects. UBS raised its price target on Broadcom shares, citing a positive outlook for the company’s artificial intelligence revenue streams. Bernstein SocGen Group maintained an Outperform rating on Broadcom, highlighting the company’s potential AI revenue opportunity in the range of $60 billion to $90 billion by 2027. Citi analysts reiterated their Buy rating on Broadcom, underscoring their confidence in the AI business .
In relation to the artificial intelligence sector, Bernstein analysts maintained an Outperform rating on shares of NVIDIA (NASDAQ: ), suggesting that NVIDIA’s H20 shipments to China are likely to remain unaffected by the new US export controls. Similarly, Citi analysts maintained their Buy rating on Broadcom, despite potential regulatory risks, expressing confidence in the strength of the AI business.
These are recent developments and further updates are expected.
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