Peter Smith
⬤ Broadcom (AVGO) attracts fresh investor attention after Nvidia CEO Jensen Huang said that future AI data centers will need optical connectors. The focus on Broadcom grows because the company keeps reporting strong financial results and because it supplies the optical parts that link Nvidia's systems inside AI clusters.
⬤ The revenue record is simple - Broadcom's sales for the last twelve months rose from below $10 billion in 2016 to above $60 billion in 2025. Growth stayed steady then sped up in 2022 when AI demand surged. The latest numbers show sales up 28 % in one year, 30 % in two years and about 21 % in five years.
⬤ The partnership carries extra weight because AI models grow larger every month and data center traffic keeps rising. Interconnects must move more data at higher speed - optical parts handle the load. Broadcom's rising sales mirror that need, since high performance computers now rely on light based links.
⬤ The semiconductor market is shifting quickly. As AI systems demand higher throughput and lower latency, suppliers of optical links gain strategic value. Broadcom operates at the meeting point of networking chips, semiconductors besides AI infrastructure - it stands to gain while the industry races to build more powerful data centers.
Peter Smith
