logo
Broadcom ships latest networking chip to speed AI

Broadcom ships latest networking chip to speed AI

Time of India5 days ago

By Max A. Cherney
SAN FRANCISCO:
Broadcom
has begun to ship its latest networking chip that aims to speed AI, the company said on Tuesday.
The chip, called the
Tomahawk 6
, boasts double the performance compared with the prior version and other traffic control features that make the networking chip significantly more efficient, Ram Velaga, a Broadcom senior vice president, told Reuters in a Monday interview.
The speed boost means that fewer
networking switches
are needed to perform the same task, Velaga said.
Broadcom's networking chips have gained increased importance because of AI. When constructing the necessary data centers for AI applications, infrastructure builders must string together hundreds or thousands of chips.
Building large-scale clusters of networked chips requires specialized networking gear and chips, of which the Tomahawk series of processors is one such component.
With the Tomahawk 6, Broadcom's engineers have boosted its speed and capabilities to the point where it can be used to construct the larger data centers that are necessary for AI, which can be over 100,000 graphics processors (GPUs) strung together, Velaga said.
"In a couple of years, you will start to see a million GPUs housed inside a physical building," he said.
Broadcom's networking chips use the Ethernet networking protocol, which has been a networking standard for decades. Nvidia produces hardware that uses a rival tech called InfiniBand and several products based on Ethernet.
"All of these networks can be very simply done on Ethernet, you don't need esoteric technologies," Velaga said.
The Tomahawk 6 is the first product in that line that will use several chips combined into a single package, a tech known as chiplets that is widely adopted by other chip designers such as Advanced Micro Devices. Adding chiplets roughly doubled the amount of silicon area used in the design, Velaga said.
Broadcom is producing the Tomahawk switch on Taiwan Semiconductor Manufacturing Co's three nanometer process.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stock Market LIVE Updates: GIFT Nifty signals higher open for India markets; Asian peers climb
Stock Market LIVE Updates: GIFT Nifty signals higher open for India markets; Asian peers climb

Business Standard

timean hour ago

  • Business Standard

Stock Market LIVE Updates: GIFT Nifty signals higher open for India markets; Asian peers climb

Sensex Today | Stock Market LIVE Updates Today, June 9: At 6:40 AM, GIFT Nifty futures were ruling 66 points higher at 25,162 level Stock Market LIVE Updates Today, Monday, June 9, 2025: Stock markets today will be, largely, influenced by global market trends. However, stock-specific triggers, surge in Covid-19 cases, foreign investors' flows, and IPOs will also guide market sentiment today. At 6:40 AM, GIFT Nifty futures were ruling 66 points higher at 25,162 level. The BSE Sensex index ended 747 points, or 0.92 per cent, higher at 82,189, while the Nifty50 closed at 25,003, higher by 252 points or 1.02 per cent. "Although the Nifty remains in a consolidation phase, the buoyancy in rate-sensitive sectors—particularly the breakout seen in the banking index—has renewed hopes of a trend resumption. A decisive breakout above the 25,200 mark in the Nifty could trigger the next leg of the rally, potentially pushing the index toward the 25,600 level," said Ajit Mishra – SVP, research, Religare Broking. FIIs/FPIs net bought Indian stocks worth ₹1,009.71 crore on Friday, while DIIs bought shares worth ₹9,342.48 crore. Global markets today Asian markets were higher on Monday as investors awaited trade talks between Washington and Beijing later in the day. Japan's Nikkei 225 climbed 0.95 per cent, and South Korea's Kospi index added 1.73 per cent. Australian markets are closed for a public holiday. On the data front, Japan's January-March quarter GDP data showed that the economy contracted at a slower pace than initially estimated, with the gross domestic product shrinking at an annualised pace of 0.2 per cent as against the initial estimates of a 0.7-per cent contraction. Meanwhile, China is scheduled to report its consumer and wholesale inflation readings for May today. A Reuters poll estimate China's consumer prices to have fallen by 0.2 per cent year-on-year, while PPI is expected to have declined by 3.2 per cent from a year earlier. In the US, major Wall Street indices ended higher last Friday after a better-than-expected non-farm payrolls data eased fears of an economic slowdown. US payrolls climbed 139,000 in May, government data showed -- above the Dow Jones forecast of 125,000. The Dow Jones Industrial Average popped 1.05 per cent, the S&P 500 also gained 1.03 per cent, and the Nasdaq Composite rallied 1.20 per cent. In the commodities market, Gold prices slipped more than 1 per cent last Friday amid a stronger-than-expected US jobs report. Spot gold fell 1.1 per cent to $3,316.13 an ounce, while US gold futures settled 0.8 per cent lower at $3,346.60. IPOs Today In the IPO market, the allotment of Ganga Bath Fittings IPO will be finalised today. Besides, Sacheerome IPO (SME) will open for subscription today. Connect with us on WhatsApp

Stock picking: Improving operating profit could signal long-term market outperformance
Stock picking: Improving operating profit could signal long-term market outperformance

Time of India

time2 hours ago

  • Time of India

Stock picking: Improving operating profit could signal long-term market outperformance

How do you pick winners when global equity markets are rocked by trade uncertainties and there is persistent weakness in domestic demand? One effective way is to closely check your company's EBITDA ( earnings before interest, taxes, depreciation, and amortisation) margins. In a nutshell, these are fundamentally sound companies that effectively minimise value erosion amid periods of high market volatility. Why EBITDA is a winner EBITDA is calculated by subtracting operating expenses (excluding depreciation) from the sales revenue. On the other hand, EBITDA margin is calculated by dividing EBITDA by the sales revenue. For example, a company with an EBITDA margin of 10% means that the company is generating Rs.10 as operating profit on every Rs.100 worth of sales. A study conducted by ET Wealth shows that the companies that have consistently improved EBITDA margins over the last four quarters have significantly outperformed the market benchmark in the last one year whereas the companies with consistent deterioration in EBITDA margins significantly underperformed the market benchmark. An analysis of 1,508 companies (excluding those in banking, finance, and insurance) reveals that 29 companies have maintained positive EBITDA margins and consistently improved them over the last four quarters. In contrast, 28 companies have shown a steady decline in EBITDA margins during the same period. The latest data pertains to the March 2025 quarter and has been sourced from the Reuters-Refinitiv database. In the last one year, the group of 29 companies (with positive EBITDA margins) has generated an equal-weighted average return of 30.3%, whereas the group of 28 companies (with negative EBITDA margins) has generated -9.8% returns. The Nifty 500 equal-weighted index delivered 7.8% returns in the last one year. The returns are based on 30 May 2025 closing prices. Experts agree. 'Improving EBITDA margins increases the RoE of the business, which in turn improves the growth and profitability of the business and the stock price of the company,' says Saurabh Joshi, Head of Research, Marwadi Shares and Finance Limited (MSFL). Significance of EBITDA margins EBITDA provides an accurate picture of the company's competitive strengths as it excludes the effect of non-cash charges (or depreciation), varying capital structures and taxes. 'EBITDA is the preferred metric for investors who want to know how a company performs at its core before financing decisions and accounting treatments cloud the picture,' says Om Ghawalkar, Market Analyst, a stock brokerage firm. A strong EBITDA indicates efficiency and the company's ability to generate value. Analysts suggest that investors should consider EBITDA margins over a period of time to spot good quality companies with sustainable business models and sound financial health. Corporate India performance Corporate India saw a modest improvement in both revenue and EBITDA in the March 2025 quarter compared to the December 2024 quarter. Based on a sample size of 1,508 non-BFSI companies. Growth is year-on-year. 'Consistent improvement in EBITDA margins signals superior execution, pricing power, cost control, and positive operating leverage. It reflects a company's ability to increase profits faster than expenses,' says Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.'. EBITDA in a soft quarter The recent quarter performance of corporate India indicates ongoing growth challenges. Despite muted revenue growth, the operating profit growth improved relative to the December 2024 quarter, helped by cost control initiatives, operational efficiencies and input cost benefits in certain segments (see graphic). EBITDA climbers favoured by analysts Going forward, analysts expect demand to improve, aided by rural revival, steady urban consumption, normal monsoons and increased government spending. However, input costs present a mixed picture. Ghawalkar says the softer crude oil prices and the strong coal supply may ease costs for sectors like aviation and chemicals, but other sectors are likely to face pressures. While cotton MSP hikes will hit input costs in the textiles segment, rising logistics costs may squeeze margins in cement. Additionally, wage inflation in IT and healthcare is likely to keep operating costs elevated in these sectors. Here are the five companies from the group of 29 with rising EBITDA margins that have a strong analyst coverage: Orient Electric The electrical equipment manufacturer specialises in home appliances, including fans, lighting and switchgears. The company has reported strong March 2025 quarter: revenue up 9% year-on-year (y-o-y), net profit up 144%. Growth was driven by the lighting and switchgears segment, on the back of distribution expansion, new products, and premium category demand. EBITDA margin expanded 390 bps y-oy, supported by cost optimisation and Project Sanchay. The fans segment is poised for market share gains via improved DTM strategy and Hyderabad plant scale-up. Centrum Broking cites DTM, premiumisation, alternate channels, and Hyderabad plant as key growth and margin drivers. Affle 3i The global technology company specialises in mobile advertising, digital consulting, and software development. In the March 2025 quarter, revenue was up 19% y-o-y, net profit up 17.8%. Growth was led by developed markets (+27.3% y-o-y); India grew nearly 15.9%. EBITDA margin up 290 bps y-o-y, driven by lower employee costs and operational gains. Management targets 20% revenue growth in 2025-26 with gradual margin improvement. Ambit Capital sees tailwinds from integrated platform, stronger processes, sales push, premiumisation, and exposure to high-growth markets and segments. Brigade Enterprises The Bangalore based real estate developer has a diversified portfolio, including residential, commercial, hospitality and retail projects. The March 2025 quarter pre-sales was up 9% y-o-y, driven by strong new launches. EBITDA was down 4% y-o-y, but margin expanded 307 bps on cost control and premium property sales. Robust launch pipeline in residential and commercial segments underpins 2025-26 growth visibility. It expects 15-20% pre-sales growth in 2025-26. Antique Stock Broking highlights geographic expansion beyond Bengaluru, strong launch pipeline, and rising rental asset occupancy as the key positives. Jupiter Life Line Hospitals The multispeciality healthcare provider offers tertiary and quaternary care across various medical specialties. In the March 2025 quarter, revenue was up 12.5% y-o-y, EBITDA up 25.7%, driven by better case mix and higher ARPOB. EBITDA margin expanded 260 bps yo-y due to cost control and operational efficiency. It is on track to reach 2,500 beds across 6 hospitals in Western India in 3-4 years. Exploring growth via acquisitions and greenfield projects. Prabhudas Lilladher expects sustained growth from expansion, rising occupancy, margin gains, and strategic moves in high-density western markets. National Aluminium The PSU company is engaged in in mining, alumina refining and aluminium smelting. In March 2025 quarter, revenue was up 47% y-o-y, EBITDA up 149%, driven by strong alumina and aluminium performance. EBITDA margin surged 2133 bps y-o-y, supported by lower costs and higher alumina realisations. Targeting 36-37% EBITDA margin in 2025-26 via volume growth and cost efficiencies. Axis Securities flags near-term EBITDA risk from falling alumina prices, but sees partial offset from strong cost control and higher alumina sales guidance.

Metals lead in profit growth: Know how various sectors of Nifty 100 index performed over the last 8 quarters
Metals lead in profit growth: Know how various sectors of Nifty 100 index performed over the last 8 quarters

Time of India

time2 hours ago

  • Time of India

Metals lead in profit growth: Know how various sectors of Nifty 100 index performed over the last 8 quarters

Source: Reuters-Refinitiv. Numbers in brackets are the number of companies in each sector. 95 companies of the Nifty100 index are considered for the analysis. LP: Loss to profit. PL: Profit to loss. Nifty 100 index represents about 67% of the free float market capitalisation of the stocks listed on NSE at the end of March 2025. Earnings growth slows amid weak demand The weakness in consumption and demand is evident in the earnings performance of the Nifty 100 index, with 95 out of 100 companies reporting an aggregate consolidated net profit growth of just 12.7% year-on-year. While the performance appears better when compared to the December 2024 quarter, with 10.9% growth, there is a marked decline compared to the 23.5% growth in the March 2024 quarter. The metals sector, particularly steel companies, delivered strong performance driven by lower raw material costs and a seasonal rise in demand from the construction industry. In contrast, the construction materials (cement) sector faced headwinds from both demand and rising costs. However, the sector's overall growth was supported by solid earnings from Grasim and UltraTech Cement . The banking sector's performance was dragged down by IndusInd Bank , which reported a consolidated net loss amid higher provisions and lower interest income. The financials sector reported a modest performance, aided by healthy growth in disbursements. The IT sector continues to see challenges amid global uncertainties. The sector is seeing stress in multiple verticals, including manufacturing, automotive, retail, and logistics. Live Events The consumer staples sector showed mixed results—rural demand improved, but urban slowdown and input cost pressures weighed on performance. A 210% profit jump in the Nifty 100 was largely driven by ITC 's exceptional gains from its hotel business sale. Among the largest five heavyweight stocks of the Nifty 100 index, Bharti Airtel , ICICI Bank and HDFC Bank reported the highest year-on-year growth in the consolidated net profits of 432%, 15.7% and 6.9% respectively.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store