{"id":15472,"date":"2026-07-10T09:30:39","date_gmt":"2026-07-10T09:30:39","guid":{"rendered":"https:\/\/tradinginsightsdaily.com\/index.php\/2026\/07\/10\/broadcom-stocks-latest-catalyst-targets-nvidia-where-it-looks-strongest\/"},"modified":"2026-07-10T09:30:39","modified_gmt":"2026-07-10T09:30:39","slug":"broadcom-stocks-latest-catalyst-targets-nvidia-where-it-looks-strongest","status":"publish","type":"post","link":"https:\/\/tradinginsightsdaily.com\/index.php\/2026\/07\/10\/broadcom-stocks-latest-catalyst-targets-nvidia-where-it-looks-strongest\/","title":{"rendered":"Broadcom stock\u2019s latest catalyst targets Nvidia where it looks strongest"},"content":{"rendered":"
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Broadcom\u2019s latest challenge to Nvidia is not another processor designed to replace its market-leading GPUs.<\/p>\n

It targets the network that enables thousands of those processors to operate as a single computing system.<\/p>\n

DriveNets on July 1 unveiled two AI-networking platforms built around Broadcom\u2019s Tomahawk 6 switch chip.<\/p>\n

The systems promise faster connections with fewer networking layers, potentially reducing delays, power consumption and spending on optical equipment.<\/p>\n

For AVGO investors, the attraction is straightforward as the company can capture more AI-infrastructure spending without needing to defeat Nvidia in GPUs.<\/p>\n

A new system turns Tomahawk 6 into a commercial catalyst<\/h2>\n

DriveNets\u2019 new 2600SL and 2601S platforms each provide 102.4 terabits per second of switching capacity across 64 ports running at 1.6 Tbps.<\/p>\n

The liquid-cooled and air-cooled systems are scheduled to begin shipping during the third quarter of 2026.<\/p>\n

Those specifications matter because training advanced AI models requires enormous numbers of accelerators to exchange data quickly.<\/p>\n

A network bottleneck can leave costly GPUs and custom processors sitting idle, reducing the return on a data centre\u2019s investment.<\/p>\n

Broadcom says Tomahawk 6 can connect as many as 128,000 accelerators through only two switching tiers.<\/p>\n

Bob Wheeler, an analyst at LightCounting, said in Broadcom\u2019s March product announcement that using fewer tiers can reduce latency, simplify congestion control and cut the number of optical links required.<\/p>\n

The DriveNets launch also marks a commercial step forward.<\/p>\n

Broadcom began shipping Tomahawk 6 in production volumes in March, less than three quarters after the chip began sampling.<\/p>\n

In Broadcom\u2019s March product announcement, Dell\u2019Oro Group vice-president Sameh Boujelbene said the company was \u201ctranslating its roadmap into real-world deployment\u201d by moving Tomahawk 6 into production shipments.<\/p>\n

Also read: Broadcom extends Apple chip partnership through 2031, stock climbs 5%<\/a><\/em><\/strong><\/p>\n

Broadcom does not need to replace Nvidia\u2019s GPUs<\/h2>\n

The more contrarian investment argument is that Broadcom can benefit even when customers continue buying Nvidia processors.<\/p>\n

Nvidia\u2019s advantage extends well beyond GPUs. Its NVLink, InfiniBand and Spectrum-X Ethernet products allow the company to control more of the system linking accelerators together.<\/p>\n

That integrated approach can deliver strong performance, but it also makes customers more dependent on Nvidia\u2019s hardware and software ecosystem.<\/p>\n

Broadcom is attacking that control through Ethernet. Tomahawk switches can support networks containing Nvidia GPUs, Google TPUs and other custom accelerators.<\/p>\n

That gives cloud operators greater freedom to combine products from several suppliers rather than buying an entirely proprietary system.<\/p>\n

The broader market is already moving towards Ethernet.<\/p>\n

Dell\u2019Oro said sales of Ethernet switches used in AI back-end networks more than doubled during the first quarter of 2026 and represented about two-thirds of switch sales in AI clusters.<\/p>\n

Boujelbene said Ethernet maintained a \u201cclear lead\u201d despite a recovery in InfiniBand demand.<\/p>\n

JPMorgan analyst Harlan Sur expects Broadcom to retain about 70% of the AI Ethernet switching-silicon market<\/a>, citing its rapid product cycle and the technical barriers facing competitors.<\/p>\n

Sur estimates Broadcom\u2019s AI-networking revenue could more than double to at least $45 billion in fiscal 2027.<\/p>\n

Mizuho analyst Vijay Rakesh has also identified scale-up Ethernet as a potential growth engine.<\/p>\n

MarketWatch reported that he believes it could eventually contribute about one-quarter of Broadcom\u2019s networking revenue and help the company compete with NVLink.<\/p>\n

Mizuho raised its Broadcom price target to $530 from $480 following the June earnings report while retaining an Outperform rating.<\/p>\n

The post Broadcom stock\u2019s latest catalyst targets Nvidia where it looks strongest<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadcom\u2019s latest challenge to Nvidia is not another processor designed to replace its market-leading GPUs. It targets the network that enables thousands of those processors to operate as a single computing system. DriveNets on July 1 unveiled two AI-networking platforms built around Broadcom\u2019s Tomahawk 6 switch chip. The systems promise faster connections with fewer networking <\/p>\n","protected":false},"author":1,"featured_media":15473,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-15472","post","type-post","status-publish","format-standard","has-post-thumbnail","category-stocks"],"_links":{"self":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/15472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/comments?post=15472"}],"version-history":[{"count":0,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/15472\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/media\/15473"}],"wp:attachment":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/media?parent=15472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/categories?post=15472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/tags?post=15472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}