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Broadcom Ramps AI Infrastructure With 102.4 Tbps Switch Shipments as Bullish Targets Rise

Surging AI sales plus a new optics platform fuel expectations for further gains despite customer concentration risk.

Overview

  • Broadcom began production-volume shipping of its Tomahawk 6 family, billed as the world’s first 102.4 Tbps Ethernet switch for large AI clusters.
  • At OFC 2026, the company introduced Taurus, described as the industry’s first 400G-per-lane optical DSP, alongside a 400G EML laser and photodiodes to scale 1.6T and future 3.2T transceivers.
  • Fiscal Q1 revenue rose 29% to $19.3 billion, non-GAAP EPS increased 28% to $2.05, and AI revenue jumped 106% to $8.4 billion.
  • Management guided to approximately $10.7 billion in AI semiconductor sales for Q2, with CEO Hock Tan noting accelerating AI demand.
  • Sell-side price targets have clustered around roughly $463, citing hyperscaler capex plans near $650 billion this year for AI infrastructure, while noting risks from customer concentration and rising competition.