Broadcom Stock Soars 10% on $40 Billion OpenAI Chip Partnership Deal
Summary
Broadcom stock rockets 10% as the chipmaker secures a massive partnership with OpenAI to design custom AI chips worth an estimated $40 billion annually starting in 2026, validating surging demand for specialized semiconductors in the artificial intelligence boom.
Key Points
- Broadcom stock surges nearly 10% after announcing a deal with OpenAI to design and deploy 10 gigawatts of custom AI chips
- Analysts estimate the partnership could generate at least $40 billion annually starting in the second half of 2026, representing major upside beyond Broadcom's projected AI revenue doubling
- The deal validates demand for Broadcom's ASIC chips alongside OpenAI's recent partnerships with Nvidia and AMD, showing multiple chip types remain essential for AI infrastructure