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Broadcom Inc. (AVGO) anticipates a 66% year-over-year increase in fourth-quarter fiscal 2025 AI revenues, projected to reach $6.2 billion, driven by strong demand for XPUs, which account for 65% of AI revenues. Semiconductor revenues are also expected to grow by 30% year-over-year, totaling $10.7 billion. The Zacks Consensus Estimate for Semiconductor sales is $10.76 billion, indicating a 30.8% growth from the previous year.
In October, Broadcom began shipping its Tomahawk 6 Ethernet switch, which boasts a capability of 102.4 terabits per second (Tbps). Other recent innovations include the Thor Ultra, an 800G AI Ethernet Network Interface Card (NIC), and the Jericho 4 Ethernet fabric router that can interconnect over one million XPUs in multiple data centers.
Year-to-date, Broadcom shares have risen by 47.8%, outperforming the broader Zacks Computer and Technology sector at 24.5%. The company is facing competition from NVIDIA and Marvell Technology, both of which are also seeing significant growth in AI and data center demands.
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