{"id":593,"date":"2025-09-07T18:02:11","date_gmt":"2025-09-07T18:02:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/593\/"},"modified":"2025-09-07T18:02:11","modified_gmt":"2025-09-07T18:02:11","slug":"broadcom-stock-surges-on-10b-ai-chip-deal-tied-to-openai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/593\/","title":{"rendered":"Broadcom Stock Surges on $10B AI Chip Deal Tied to OpenAI"},"content":{"rendered":"

Broadcom Inc. (AVGO)<\/a> shares climbed more than 9% in Friday\u2019s trading<\/a> after the chipmaker revealed a $10 billion order for new AI<\/a> chips. The company did not name the buyer, but reports from the Financial Times and Reuters suggested that OpenAI was the customer. The news hit Broadcom\u2019s rival, AMD (AMD)<\/a>, hard, with its shares falling over 6%<\/a>. <\/p>\n

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The order is seen as a major step for Broadcom\u2019s push into custom semiconductors. These chips are designed for companies that want an option beyond the higher-cost processors sold by Nvidia Corp. (NVDA)<\/a>. The chips will be built for internal use by the customer and are expected to start shipping in 2026.<\/p>\n

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Growth Outlook and Market Impact<\/p>\n

Broadcom said the deal will lift its artificial intelligence<\/a> revenue in fiscal 2026, with analysts now projecting that sales could reach well over $40 billion. That outlook comes after the company already reported strong results for its third quarter<\/a>. Revenue rose to $15.95 billion, while artificial intelligence sales jumped 63% to $5.2 billion.<\/a><\/p>\n

For the current quarter, Broadcom guided revenue of about $17.4 billion, above Wall Street forecasts. The company expects AI chip sales of $6.2 billion, up 66% from last year.<\/p>\n

\"\"<\/a>Broadcom expects strong growth from its AI semiconductor<\/a> business, which drove a 60% revenue jump and is projected to lift overall sales by 21% in Q3 FY 2025, even as other chip segments remain flat.<\/p>\n

CEO Stability Adds Confidence<\/p>\n

Adding to the rally, Chief Executive Hock Tan confirmed he will remain in charge through at least 2030. Tan has led the company for nearly twenty years and has played a central role in its growth into a key supplier for cloud and artificial intelligence markets. Meanwhile, Broadcom stock has already gained 45% year-to-date<\/a> after more than doubling in 2024. If the latest surge holds, the company could add more than $200 billion to its $1.44 trillion market value.<\/p>\n

What Is the Price Target for AVGO Stock?<\/p>\n

On the Street, Broadcom boasts a Strong Buy consensus among analysts. The average AVGO stock price target is $375.58<\/a>, implying a 12.15% upside from the current price. <\/p>\n

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See more AVGO analyst ratings<\/a><\/p>\n

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