Broadcom on Wednesday introduced new semiconductor products to improve high-speed interconnections between artificial intelligence processors in data centers. Broadcom stock rose on the news.
While graphics processing units and accelerators grab most of the attention in the AI market, networking and related gear are critical for the efficient operation of data centers.
Broadcom announced the availability of the world's first 5-nanometer PCI Express Gen5/Gen6 retimers optimized for AI workloads. Retimers are chips that boost signals when transmitting data between computers in data centers.
"As the demands on AI servers continue to increase, cloud and enterprise data center providers require higher bandwidth, lower latency, lower power, and an open standard-based fabric to interconnect compute, accelerators, networking and storage devices," Broadcom said in a news release.
Broadcom Stock Is Recent Breakout
On the stock market today, Broadcom stock climbed 0.5% to close at 1,350.
On Jan. 19, Broadcom shares broke out of an ascending base at a buy point of 1,151.82, according to IBD MarketSurge charts.
Broadcom stock notched a record high of 1,438.17 on March 4 before pulling back. Its high was within the 20%-to-25% profit-taking zone, according to IBD trading guidelines.
Next up for Broadcom is the chipmaker's fiscal first-quarter earnings report, due out late Thursday.
Analysts polled by FactSet expect the Palo Alto, Calif.-based company to earn $10.40 a share on sales of $11.8 billion. In the year-earlier period, Broadcom earned $10.33 a share on sales of $8.92 billion.
Broadcom stock is on the IBD Tech Leaders list.
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