Broadcom (AVGO), on Tuesday, introduced a new processor that the company claims is the best in class for artificial intelligence networks. AVGO's stock price has risen this year thanks to its AI chips.
Broadcom announced in a press release that its Jericho3 AI system-on chip can significantly reduce the time required to complete any AI task.
In a written announcement, Ram Velaga said that the benchmark for AI networking was to reduce the time and effort required to train and infer large-scale AI model.
He said, "Jericho3 AI delivers significant reductions in job completion times compared to other alternatives in the market."
Broadcom claims that its new system on chip completes AI tasks 10% faster than InfiniBand based network systems.
The Jericho3 AI system provides 26 petabits of Ethernet bandwidth per second. This is almost four times as much bandwidth as the previous generation. The power consumption per gigabit is also 40% lower.
Today, Broadcom closed at 632.32. The stock price rose by 0.8%. AVGO is up 13.1% in the past year through Tuesday's closing, compared to an 8.2% increase for S&P 500.
Broadcom's Jericho3 AI is now available on the market, as cloud computing providers invest in AI systems at a record pace. IDC, a market research firm, predicts that the global AI spending will reach at least $300 billion in 2026 and $154 billion by 2023.
Bob Wheeler said that cloud operators would upgrade their AI infrastructure in order to deal with the huge growth in bandwidth. This is due to the new generation of high capacity GPUs and the advent of large language models.
He said, "Jericho3 AI offers a high bandwidth, low latency, and low power choice for networks that connect tens or thousands of GPUs. This will revolutionize the economics of maintaining and building AI clusters in this exciting new age."
According to IBD Stock Checkup, Broadcom shares are tied for the first place in IBD’s fabless semiconductor group. IBD's fabless semiconductor industry group is ranked first among 197 groups of industries that it tracks. AVGO has the best possible IBD Composite rating of 99.
AVGO is also listed on IBD's Tech Leaders list and IBD's Big Cap 20 list.
According to IBD MarketSmith charts, AVGO has seen a positive change in its stock price. Its 50-day moving median line is now a strong support.
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