Broadcom (AVGO) has introduced the first Wi-Fi 8 chips made for networks that support AI. The launch took place at Network X 2025 in Paris and marks a new step in how wireless systems manage data and power use. Following the news, AVGO shares declined 3.52% to close at $344.13. However, the stock is recovering in pre-market trading, gaining nearly 2% as of writing.
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The Wi-Fi 8 platform includes four chips built for different needs; the BCM6718 is made for home routers, the BCM43840 and BCM43820 are designed for enterprise access points, and the BCM43109 is aimed at phones and cars. Each chip includes a telemetry engine that tracks live performance data and improves power use by up to 30% compared to Wi-Fi 7. The chips also support faster connections with less delay and fewer data drops, helping AI-powered devices stay connected more reliably.
A Focus on Reliability and Partnerships
Earlier Wi-Fi generations mainly increased speed, but Wi-Fi 8 shifts attention toward reliability. The new Ultra High Reliability standard aims to raise throughput by about 25% while cutting lag during data transfers. The chips also use coordinated beamforming and dynamic spectrum tools that let multiple access points work together for stronger, more stable signals. These updates are meant to keep devices connected in busy settings like homes, offices, and vehicles.
Broadcom’s Wi-Fi 8 rollout comes soon after its partnership with OpenAI (PC:OPAIQ). The two firms plan to build 10 gigawatts of custom AI accelerators through 2029. The deal, valued at about $100 billion, links Broadcom’s wireless products with its growing chip business in AI data centers. In addition, Broadcom plans to license its Wi-Fi 8 technology to other firms to encourage adoption across smart homes, connected cars, and industrial systems.
Major brands, including ASUS, NETGEAR (NTGR), and Comcast (CMCSA), have already agreed to use the new chips once Wi-Fi Alliance certification is complete, which is expected in early 2028. With Wi-Fi 8, Broadcom is taking an early lead in shaping how AI devices connect and share data across future networks.
Is Broadcom a Buy, Sell, or Hold?
Turning to the Street’s analysts, Broadcom holds a Strong Buy consensus, based on 28 analysts’ ratings. The average AVGO stock price target stands at $389.83, implying a 13.28% upside from the current price.
