Latest news with #MaxA.Cherney
Time of India
3 days ago
- Business
- Time of India
Broadcom rides on AI chip demand to deliver upbeat revenue forecast
By Harshita Mary Varghese and Max A. Cherney Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology . Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.
Yahoo
4 days ago
- Business
- Yahoo
GlobalFoundries boosts investment plans to $16 billion, with research focus
By Max A. Cherney and Stephen Nellis SAN FRANCISCO (Reuters) -Chip manufacturer GlobalFoundries said on Wednesday it planned to increase its investment plans to $16 billion, allocating an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies. The Malta, New York-based company said it is working with the Trump administration to bring chip manufacturing technology and various components of that supply chain onto U.S. soil. The chip manufacturer attributed the expansion to the boom in artificial intelligence hardware, a trend that has also benefited other chipmakers such as Taiwan Semiconductor Manufacturing Co. "The AI revolution is driving strong, durable demand for GF's technologies that enable tomorrow's data centers," GlobalFoundries Chief Executive Tim Breen said in a statement. The $1 billion capital spending boost is expected to support factory expansions in New York and Vermont, and is in addition to the $12 billion the company said in 2024 it planned to invest over the next 10 plus years. GlobalFoundries did not disclose a specific timeframe for the additional funding it announced on Wednesday. The $3 billion in research and development GlobalFoundries said it will spend will be split into three areas: chip packaging technologies, silicon photonics that can be used to make quantum computing processors, and gallium nitride which is used in electric vehicles and other power-related applications. In April, Intel and TSMC showed off their latest chip manufacturing and packaging capabilities at events, including the capability to stitch together multiple chips into a dinner-plate-sized device. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
5 days ago
- Business
- Time of India
Broadcom ships latest networking chip to speed AI
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.
Yahoo
5 days ago
- Business
- Yahoo
Broadcom ships latest networking chip to speed AI
By Max A. Cherney SAN FRANCISCO (Reuters) -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.
Yahoo
5 days ago
- Business
- Yahoo
Broadcom ships latest networking chip to speed AI
By Max A. Cherney SAN FRANCISCO (Reuters) -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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
