Broadcom (AVGO) shares remain in focus this week after the California-based semiconductor firm launched the industry’s first 128G Fibre Channel platforms.
These new switches dubbed “Brocade Gen 8” are engineered to handle the bandwidth and latency demands of enterprise artificial intelligence (AI) workloads.
At the time of writing, Broadcom stock is up nearly 170% versus its year-to-date low in early April
What the Brocade Gen 8 Launch Means for Broadcom Stock
AVGO shares rallied on the Brocade Gen 8 announcement mostly because it positions the company at the forefront of next-gen storage networking. These switches aren’t just a speed upgrade; they’re a strategic leap.
With 128G throughput, quantum-safe encryption, and AI-driven SAN intelligence, Broadcom is effectively targeting the high-performance backbone of AI data centers.
Demand for deterministic, low-latency storage fabrics is growing fast as enterprise clients continue to scale GPU clusters and mission-critical artificial intelligence workloads.
The launch of Brocade Gen 8 strengthens AVGO’s moat in enterprise infrastructure and deepens its ties with OEMs like Dell (DELL) and HPE (HPE).
Plus, it reinforces the firm’s strategy of embedding AI into its networking stack, an increasingly valuable differentiator as artificial intelligence workloads become more storage-bound.
Citi Sees Significant Further Upside in AVGO Shares
Citi’s senior analyst Christopher Danely sees Broadcom shares as worth owning heading into 2026, especially after the company’s launch of the Brocade Gen 8 switches.
Danely maintains a “Buy” rating on the semiconductor behemoth with a $415 price target signaling potential upside of another 17% from current levels.
“From our conversations, it appears NVDA is less popular compared to AVGO stock given lower EPS growth,” he told clients in his latest research note.
Still, Broadcom is trading at a more attractive sales multiple of less than 29x at the time of writing, versus Nvidia’s nearly 34x.
Broadcom Remains in Favor With Wall Street Analysts
Other Wall Street analysts also recommend sticking with Broadcom stock for the long-term.
According to Barchart, the consensus rating on AVGO shares sits at “Strong Buy” currently with the mean target of about $401 indicating potential upside of roughly 13% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- Wall Street Is Betting on Nuclear Energy, But Legendary Investor Peter Thiel Just Ditched This 1 Key Power Stock
- With $1.6 Billion in Jeopardy, Should You Buy, Sell, or Hold Plug Power Stock Here?
- Is the S&P Technically Not Bullish Now?
- As Nvidia Stock Soars Following Q3 Beat, Will Michael Burry Bite the Dust?