Broadcom (AVGO) has launched its Tomahawk Ultra Ethernet switch, designed to enhance AI revenue, which increased 46% year-over-year in Q2 fiscal 2025. The switch boasts a throughput of 51.2 terabits per second, 77 billion packets per second, and a latency of 250 nanoseconds, positioning Broadcom to meet the demand from hyperscalers for efficient AI workload management.
The Tomahawk Ultra supports up to 1,024 accelerator connections, offering a competitive edge over Nvidia’s NVLink. Broadcom’s shares have risen 20.9% year to date, surpassing the Zacks Electronics – Semiconductors index, which grew by 15.6%. With a forward price-to-sales ratio of 18.41, AVGO is considered overvalued compared to the industry average of 8.75.
The consensus estimate for Broadcom’s Q3 fiscal 2025 earnings is $1.66 per share, indicating a 33.87% increase from the previous year. The annual earnings estimate for fiscal 2025 stands at $6.64 per share, reflecting a growth of 36.34% over fiscal 2024.
