Broadcom Unveils Next-Gen Optical Chip Tech To Power AI Data Centers

Broadcom Inc. (NASDAQ:AVGO) announced significant advancements in its co-packaged optics (CPO) technology on Thursday, with the launch of its third-generation 200G per lane (200G/lane) CPO product line.

Broadcom highlighted key improvements in OSAT processes, thermal designs, handling procedures, fiber routing, and overall yield.

Broadcom’s leadership in CPO began in 2021 with its first-generation Tomahawk 4-Humboldt chipset, enabling an early learning cycle across the entire CPO supply chain.

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This chipset introduced key innovations, including high-density integrated optical engines, edge coupling, and detachable fiber connectors.

Building on that success, the second-generation Tomahawk 5-Bailly (TH5-Bailly) chipset became the industry’s first volume-production CPO solution.

As part of the TH5-Bailly production, Broadcom focused on automated testing and scalable manufacturing processes, setting the stage for high-volume production of future generations.

Broadcom’s partners included Corning Inc (NYSE:GLW), Delta Electronics, and Foxconn Interconnect Technology.

On Tuesday, Corning announced a partnership with Broadcom to power AI data centers with advanced optics for faster, more efficient processing.

Corning will supply advanced optical components for Broadcom’s Bailly CPO system, making it ideal for large-scale artificial intelligence (AI) clusters.

Broadcom Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Broadcom have an average 1-year price target of $250.92, representing an expected upside of 7.41%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Broadcom, while 13 analysts have bullish ratings. The street high price target from Cantor Fitzgerald is $300.0, while the street low from Citigroup is $210.0.

Price Action: AVGO stock is trading higher 0.19% to $232.55 at the last check on Thursday.

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