PALO ALTO, Calif. - Broadcom Inc. (NASDAQ:AVGO), a 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 to address the needs of small to mid-sized businesses with high-performance and cyber-resilient technology. According to InvestingPro, Broadcom 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, claiming the industry's lowest latency and most energy-efficient design, is now available as a cost-effective entry point into Gen 7 Fibre Channel technology.
The Brocade G710 switch boasts a port-to-port latency of just 460 nanoseconds at 64G speed, setting a new benchmark in the industry. Additionally, it offers a low power draw, typically around 65 watts, aligning with the increasing demand for energy-efficient data center technologies.
According to Dennis Makishima, vice president and general manager of the Brocade Storage Networking division at Broadcom, the G710 switch integrates autonomous SAN capabilities to ensure a cyber-resilient architecture that's easy to deploy and manage. The switch is designed to deliver reliability, security, and performance, with a focus on continuous uptime and optimal functioning even in the face of challenges.
For businesses concerned about scalability, the G710 can start with as few as eight ports and expand up to 24 ports, supporting environments that require growth. It also provides a total bandwidth of 1.5 Tb/s, catering to demanding application and storage needs.
Broadcom emphasizes the switch's six nines (99.9999%) availability, which ensures minimal network downtime. The product's self-healing and self-optimizing features are intended to maintain network operations and performance consistently. 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 is offering a lifetime warranty for the G710 switch, providing 24/7 access to technical experts and ongoing security patches and firmware updates, aiming to protect systems against emerging threats throughout their lifecycle.
The announcement did not solely focus on the product's features but also highlighted endorsements from industry partners such as Dell Technologies (NYSE:DELL), Fujitsu Technology Systems, H3C, Hitachi (OTC:HTHIY) Vantara, HPE, IEIT SYSTEMS, Lenovo Infrastructure, NetApp (NASDAQ:NTAP), and TG Stor, who have expressed their support for the integration of the Brocade G710 into their offerings. With a remarkable 105% return over the past year, Broadcom continues to demonstrate strong market performance. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 20 analysts recently revising their earnings expectations upward. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering this and 1,400+ other top US stocks.
This news article is based on a press release statement 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 notes to fortify its financial structure. These developments are part of a broader strategic plan to optimize Broadcom's capital structure.
On the earnings front, Broadcom reported fiscal fourth-quarter 2024 revenues of $14.1 billion with earnings per share of $1.42. For the first quarter of fiscal year 2025, the company projects revenues of $14.6 billion and an EBITDA margin of approximately 66%.
Analyst firms have expressed optimism about Broadcom's prospects. UBS increased the price target for Broadcom shares, citing a positive outlook on the company's AI revenue streams. Bernstein SocGen Group maintained an Outperform rating on Broadcom, highlighting the company's potential AI revenue opportunity ranging from $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 AI sector, Bernstein analysts maintained an Outperform rating on NVIDIA (NASDAQ:NVDA) shares, suggesting that NVIDIA's H20 shipments to China are likely to remain unaffected by new U.S. 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 anticipated.
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