Broadcom(US:AVGO) Huan Qiu Wang·2025-06-04 02:04Core Insights - Broadcom has officially delivered its latest data center switch chip, Tomahawk 6, which features a single-chip switching capacity of 102.4 Tbps, doubling the bandwidth of existing Ethernet switches and supporting large-scale GPU cluster interconnect needs [1][4]. Group 1: Product Features - Tomahawk 6 is designed for the AI era, with a theoretical peak bandwidth of 102 Tbps, capable of processing 25,000 4K movies per second, and achieving a sixfold throughput improvement over the previous Tomahawk 5 chip [4]. - The chip supports 100G/200G SerDes interfaces and co-packaged optical modules (CPO), catering to the customized needs of large-scale AI network operators [4]. - Tomahawk 6 aims to eliminate data transmission bottlenecks, increasing GPU cluster utilization efficiency from below 40% to over 90%, thus providing foundational support for training and inference of trillion-parameter models [4]. Group 2: Market Impact and Financials - Despite manufacturing costs doubling compared to the previous generation, Broadcom plans to keep the chip price below $20,000 through a technology premium strategy and bulk purchase discounts [4]. - The introduction of Tomahawk 6 is expected to reduce AI training costs by 30%-40% [4]. - Following the announcement of Tomahawk 6, Broadcom's stock price rose by 3.3% within 48 hours before the earnings report, with a market capitalization exceeding $1.2 trillion [5]. - Morgan Stanley maintains an "overweight" rating on Broadcom, predicting a 65% year-over-year growth in data center business revenue for fiscal year 2025, with AI-related orders accounting for over 40% [5].