A New AI Chip Contender Emerges
For years, Nvidia (NVDA) has held the crown as the king of artificial intelligence (AI) chips, its GPUs powering everything from generative AI to data centers. But the tides are shifting. Broadcom (NASDAQ: AVGO) just delivered a blockbuster quarter that sent its stock surging over 9% to fresh record highs, adding $135 billion in market cap and bringing it close to $1.6 trillion in valuation.
The catalyst? A massive $10 billion AI chip order from a new customer (reportedly OpenAI), plus a breakthrough in next-gen 2 nanometer chip design that positions Broadcom as the leading Wall Street-approved alternative to Nvidia.
Broadcom’s Earnings Ignite the Rally
Broadcom’s third-quarter earnings blew past expectations, fueled by AI demand.
- Q4 AI Revenue Forecast: $6.2 billion (vs. $5.8B expected)
- New Customer Win: Reportedly OpenAI, adding $10 billion in future AI revenue
- Tech Milestone: First in the industry to work on a 2nm AI chip process
CEO Hock Tan also announced he will remain at the helm for at least five more years, giving investors added confidence in Broadcom’s long-term roadmap.