Broadcom launches Sian 2 DSP for AI data centers
- Broadcom launched the Sian 2 DSP, a 200 Gbps per lane PAM-4 PHY, essential for AI data centers.
- The company reported a 42% revenue growth in Q3, reaching $13.07 billion, and expects AI semiconductor revenue to hit $12 billion by 2024.
- Analysts maintain a bullish outlook on Broadcom's stock, reflecting confidence in its growth and market position.
On Monday, Broadcom Inc announced the launch of its Sian 2 digital signal processing (DSP) PHY, which operates at 200 Gbps per lane. This new product builds upon the original Sian DSP and is designed to support the next generation of AI infrastructure, particularly in data centers. The Sian family of products is crucial for enabling high-performance links of 800G and 1.6T, catering to the growing demands of AI applications. Broadcom's recent financial performance has been strong, with a reported third-quarter revenue growth of 42%, reaching $13.07 billion, surpassing analyst expectations. The company anticipates a significant increase in AI semiconductor revenue, projecting it to reach $12 billion by fiscal 2024. This optimistic outlook is supported by the increasing investments from major Tier-1 hyperscalers in AI technologies. Analysts have maintained a bullish stance on Broadcom's stock, with no bearish recommendations noted. The stock has seen a remarkable increase of 104% over the past year, reflecting investor confidence in the company's growth potential. The average one-year price target for Broadcom shares is set at $534.17, indicating a substantial expected upside. The launch of the Sian 2 DSP is a strategic move for Broadcom, reinforcing its leadership in optical DSP PHYs. As the demand for AI capabilities continues to rise, Broadcom's innovations position it well to capitalize on this trend, ensuring its relevance in the competitive semiconductor market.