Broadcom's Big AI Move In Japan Could Slash Data Center Power Use By Half

Group 1: Partnership and Technology Development - Broadcom is partnering with NTT to develop optical semiconductor devices aimed at reducing data center power consumption by up to 50% [1][2] - The collaboration focuses on creating optical-based semiconductor packages that can potentially double processing speed and capacity [3] - NTT's devices will support its Innovative Optical and Wireless Network (IOWN) initiative, targeting energy-efficient infrastructure for AI [4] Group 2: Market Position and Financial Outlook - Broadcom's stock has increased by 45% year-to-date, significantly outperforming the Nasdaq 100's 19% gain, driven by demand for custom chips and VMware infrastructure [4] - The company is transitioning from a smartphone component supplier to a key player in AI chips and networking, capitalizing on the growth of data centers [5] - Broadcom raised its fiscal 2026 AI revenue growth outlook to 50–60%, with projected AI chip sales reaching $6.2 billion next quarter [6]