Broadcom on Tuesday announced new high-speed networking chips for artificial intelligence data centers that use less power than their predecessors. But AVGO stock fell Tuesday.
The new chips, Sian3 and Sian2M, are additions to the company's PAM-4 DSP PHY product portfolio, which offers data transmission speeds of 200 gigabits per second per lane.
The products use a four-level pulse amplitude modulated (PAM) signal with a digital signal processor (DSP) in a physical layer (PHY) transceiver.
Broadcom's Sian3 is its next-generation chip and uses 3-nanometer process technology. It is a step above Broadcom's Sian2 product, introduced last September, in performance and power efficiency. Sian2 used 5-nanometer process technology. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.
Sian2M is a specialized variant of the Sian2 family, optimized for lower power usage over multi-mode fiber.
On the stock market today, AVGO stock dropped 1.6% to close at 188.26.
Power usage is a major concern for companies scaling AI and machine learning computing clusters, along with data transmission speeds.
"Broadcom's Sian family of DSP PHYs is foundational to the low-power, high-bandwidth optical connectivity needed for AI/ML clusters," Vijay Janapaty, vice president and general manager of Broadcom's Physical Layer Products Division, said in a news release.
AVGO Stock Is A Tech Leader
He added, "Our new 3nm Sian3 delivers over 20% power reduction for 1.6T optical modules, while Sian2M with integrated VCSEL (vertical-cavity surface-emitting laser) drivers and 200G VCSELs brings cost and power efficiency to short-reach links. These innovations enable our customers to scale AI clusters to meet the demands of growing AI workloads."
Broadcom is offering samples of Sian3 and Sian2M to early-access customers. It expects to ramp production of Sian3 in the third quarter.
Broadcom ranks second out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. AVGO stock has an IBD Composite Rating of 95 out of 99.
Further, AVGO stock is on the IBD Tech Leaders list.
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