Broadcom (AVGO) Backs DriveNets Tomahawk 6 Push For Open Ethernet AI Data Centers
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Broadcom (AVGO) Backs DriveNets Tomahawk 6 Push For Open Ethernet AI Data Centers Bailey Pemberton Fri, July 3, 2026 at 6:16 PM EDT 3 min read AVGO Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. DriveNets is expanding its AI Fabric portfolio with Broadcom's Tomahawk 6 ASIC for large scale AI data centers. The new open Ethernet based networking platforms are aimed at hyperscale AI clusters and are targeted for deployment in Q3 2026. The partnership broadens Broadcom's role in AI infrastructure by putting its latest high capacity, power focused silicon at the core of next generation data center networks. For investors watching Broadcom (NasdaqGS:AVGO), this new DriveNets collaboration comes amid a mixed recent share price backdrop. The stock closed at $360.45. It is up 3.7% year to date and 31.9% over the past year, but has fallen 25.2% over the past month and 4.9% over the past week. The long term record is strong, with the 3 year return at 340.7% and the 5 year return very large. This AI networking move adds another piece to Broadcom's broader AI hardware and connectivity story, especially for readers following data center spending. As open Ethernet gains traction in large AI clusters, investor attention is likely to focus on how quickly Tomahawk 6 based systems are adopted once Q3 2026 deployments begin. The key angle to watch is how this ecosystem build out influences Broadcom's position across the AI infrastructure stack over time. Stay updated on the most important news stories for Broadcom by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Broadcom. 📰 Beyond the headline: 2 risks and 5 things going right for Broadcom that every investor should see. ✅ Price vs Analyst Target : At US$360.45, Broadcom trades about 31% below the US$523.73 analyst target, with a published range from US$215.88 to US$650.00. ✅ Simply Wall St Valuation : Shares are assessed as trading 20.9% below estimated fair value, pointing to an undervalued status. ❌ Recent Momentum : The stock is down 25.2% over the past 30 days, so price momentum currently works against new buyers. There's only one way to know the right time to buy, sell or hold Broadcom. Head to Simply Wall St's company report for the latest analysis of Broadcom's Fair Value . 📊 The DriveNets partnership puts Broadcom's Tomahawk 6 at the center of open Ethernet AI fabrics, strengthening the case for its role in large scale AI networking. 📊 Watch adoption of Tomahawk 6 platforms from Q3 2026, AI data center capex trends, and how these relate to Broadcom's Semiconductor segment revenue and margins. ⚠️ With two flagged risks, including significant insider selling and high debt, investors may want to balance AI upside with balance sheet and governance signals. For the full picture including more risks and rewards, check out the complete Broadcom analysis . Alternatively, you can check out the community page for Broadcom to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AVGO . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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